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On the link between the coefficient of determination and polarization

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Author Info

  • Federico Palacios-González

    (University of Granada)

  • Rosa María García-Fernández

    ()
    (University of Granada)

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    Abstract

    In 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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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2011-196.pdf
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    Bibliographic Info

    Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 196.

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    Length: 21 pages
    Date of creation: 2011
    Date of revision:
    Handle: RePEc:inq:inqwps:ecineq2011-196

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    Related research

    Keywords: Polarization; coefficient of determination; ANOVA model.;

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