On the link between the coefficient of determination and polarization
AbstractIn this paper, taking as starting point the link between polarization and dispersion, we reformulate the measure of polarization of Zhang and Kanbur (2001) using the decomposition of the variance instead of the decomposition of the Theil index. The proposed measure is equivalent to the coefficient of determination of an ANOVA Linear Model, that explains the income of the households as a function of any population characteristic e.g. education, gender, occupation etc. This result provides an alternative way to analyze polarization by household characteristics and at the same time allows us to compare sub-populations via the estimated coefficients of the ANOVA model.
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Bibliographic InfoPaper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 196.
Length: 21 pages
Date of creation: 2011
Date of revision:
Polarization; coefficient of determination; ANOVA model.;
Find related papers by JEL classification:
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-06-11 (All new papers)
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