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On a class of bi-polarization variance-based measurement: Evidence from Cameroonian data

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  • Chameni Nembua, Célestin

Abstract

This paper revisits one of the bipolarization indices of the large class of Duclos-Estebane-Ray polarization measures. The relationship between polarization, inequality and poverty is analyzed via the index. First, polarization measure for the median is defined and related to the subtraction of the between group and the within-groups components of the coefficient of variation squared. Second, the generalized bipolarization measure is defined and related to poverty via the headcount ratio, the income gap ratio and the overabundance gap ratio. In particular, it is shown that polarization is high when the headcount ratio is around 0.5 and polarization is little when the headcount ratio is far from this value. Third, the preceding results are applied to analyze the Cameroonian household’s consumption distribution.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 25411.

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Date of creation: 10 Jul 2010
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Handle: RePEc:pra:mprapa:25411

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Keywords: Polarization; inequality; poverty; Cameroon;

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  1. Wang, You-Qiang & Tsui, Kai-Yuen, 2000. " Polarization Orderings and New Classes of Polarization Indices," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 2(3), pages 349-63.
  2. Jean-Yves Duclos & Joan Esteban & Debraj Ray, 2003. "Polarization: Concepts, Measurement, Estimation," Working Papers 46, Barcelona Graduate School of Economics.
  3. Dagum, Camilo, 1997. "A New Approach to the Decomposition of the Gini Income Inequality Ratio," Empirical Economics, Springer, vol. 22(4), pages 515-31.
  4. Esteban, J. & Ray, D., 1993. "On the Measurement of Polarization," UFAE and IAE Working Papers 221.93, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  5. Wolfson, Michael C, 1994. "When Inequalities Diverge," American Economic Review, American Economic Association, vol. 84(2), pages 353-58, May.
  6. Juan Gabriel Rodríguez, 2006. "Measuring Bipolarization, Inequality, Welfare and Poverty," Working Papers 39, ECINEQ, Society for the Study of Economic Inequality.
  7. Juan G. Rodríguez & Rafael Salas, . "Extended Bi-Polarization And Inequality Measures," Working Papers 10-03 Classification-JEL , Instituto de Estudios Fiscales.
  8. Wolfson, Michael C, 1997. "Divergent Inequalities: Theory and Empirical Results," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 43(4), pages 401-21, December.
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