Inequality factor decompotition under uniform additions property with applications to Cameroonian rural data
AbstractThis paper proposes new factors decomposition methods for classical inequality indices such as Gini index, variance and squared coefficient of variations index. The approach consists in relaxing the normalization property in order to extend the natural decomposition to a decomposition rule which satisfies the uniform additions property. The regression-based method using the new formulations of components contributions is carried out. Empirical examples, using Cameroonian data, are provided to demonstrate the use of the procedure and to contrast our results to those based on Morduch and Sicular (2002) principle, especially in the case of the Gini index.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 31250.
Date of creation: 2009
Date of revision: 2009
Inequality factors decomposition; uniform additions property; regression-based. decomposition; Cameroon.;
Other versions of this item:
- C. Chameni Nembua, 2012. "Inequality factor decomposition under uniform additions property with applications to Cameroonian rural data," Applied Economics Letters, Taylor and Francis Journals, vol. 19(14), pages 1365-1371, September.
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
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- Jonathan Morduch & Terry Sicular, 1998.
"Rethinking Inequality Decomposition, with Evidence from Rural China,"
Harvard Institute of Economic Research Working Papers
1831, Harvard - Institute of Economic Research.
- Jonathan Morduch & Terry Sicular, 2002. "Rethinking Inequality Decomposition, With Evidence from Rural China," Economic Journal, Royal Economic Society, vol. 112(476), pages 93-106, January.
- Wan, Guanghua, 2002. "Regression-based Inequality Decomposition: Pitfalls and a Solution Procedure," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Lerman, Robert I & Yitzhaki, Shlomo, 1985. "Income Inequality Effects by Income," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 151-56, February.
- Frank A Cowell & Carlo V. Fiorio, 2006. "Rethinking Inequality Decomposition:Comment," STICERD - Distributional Analysis Research Programme Papers 82, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
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