Linking Yitzhaki’s and Dagum’s Gini Decompositions
AbstractIn this article we show that the Gini coefficient is simultaneously decomposable both by sources of income and by populations of income receivers for non-overlapping income distributions: the so-called first-best Gini multi-decomposition. We show that this multidimensional decomposition is useful for many reasons: (i) it is related to the degree of inequality aversion of the decision maker, (ii) it is especially well suited to study inequalities between poor and non-poor people, (iii) it enables one to measure within- and between-group Gini elasticities, which gauge the impact of global transfers on within- and between-group inequalities, respectively.
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Bibliographic InfoPaper provided by LAMETA, Universtiy of Montpellier in its series Working Papers with number 08-13.
Length: 18 pages
Date of creation: Jul 2008
Date of revision: Jul 2008
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Other versions of this item:
- Stéphane Mussard & Patrick Richard, 2012. "Linking Yitzhaki's and Dagum's Gini decompositions," Applied Economics, Taylor & Francis Journals, vol. 44(23), pages 2997-3010, August.
- Stéphane Mussard & Patrick Richard, 2008. "Linking Yitzhaki’s and Dagum’s Gini Decompositions," Cahiers de recherche 08-21, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-08-06 (All new papers)
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