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Measuring polarization by reduced-form indices

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Author Info
Satya R. Chakravarty () (Indian Statistical Institute)
Bhargav Maharaj (Ramakrishna Mission Vidyamandira, Belur, India)

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Abstract

An abbreviated or reduced-form monotonic polarization index is an increasing function of the between-group term and a decreasing function of the within-group term of a population subgroup decomposable inequality index. The between-group term represents the „identification? component of polarization and the within-group term can be regarded as an inverse indicator of the „alienation? component of polarization. An ordering for ranking alternative distributions of income using such polarizations indices has been developed. Several polarization indices of the said type have been characterized using intuitively reasonable axioms. Finally, we also consider the dual problem of retrieving the inequality index from the specified form of a polarization index.

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File URL: http://www.ecineq.org/milano/WP/ECINEQ2009-135.pdf
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Publisher Info
Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 135.

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Length: 32 pages
Date of creation: 2009
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Handle: RePEc:inq:inqwps:ecineq2009-135

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Related research
Keywords: Polarization; ordering; axioms; indices; characterization; duality.;

Find related papers by JEL classification:
C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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