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Non-Hierarchical Bivariate Decomposition of Theil Indexes

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Author Info
Kam Ki Tang
Dennis Petrie (CEPA - School of Economics, The University of Queensland)

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Abstract

This paper develops a method to conduct non-hierarchical bivariate decomposition of Theil indexes. The method has the merits that, first, it treats all variates symmetrically and therefore facilitates the comparison of inequalities associated with different variates; and, second, it highlights the interaction between variates in the creation of inequality. The method is applied to measure gender and ethnic income inequality in Australia.

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File URL: http://www.uq.edu.au/economics/cepa/docs/WP/KK%20Tang_CEPA%20WP_03_07.pdf
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Paper provided by School of Economics, University of Queensland, Australia in its series CEPA Working Papers Series with number WP032007.

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Date of creation: 2007
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Handle: RePEc:qld:uqcepa:26

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  1. Cowell, Frank A. & Kuga, Kiyoshi, 1981. "Additivity and the entropy concept: An axiomatic approach to inequality measurement," Journal of Economic Theory, Elsevier, vol. 25(1), pages 131-143, August. [Downloadable!] (restricted)
  2. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-25, April. [Downloadable!] (restricted)
  3. Cowell, Frank A, 1980. "On the Structure of Additive Inequality Measures," Review of Economic Studies, Blackwell Publishing, vol. 47(3), pages 521-31, April. [Downloadable!] (restricted)
  4. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-20, July. [Downloadable!] (restricted)
  5. Mishra, Padmaja & Parikh, Ashok, 1992. "Household Consumer Expenditure Inequalities in India: A Decomposition Analysis," Review of Income and Wealth, Blackwell Publishing, vol. 38(2), pages 225-36, June.
  6. Takahiro Akita, 2003. "Decomposing regional income inequality in China and Indonesia using two-stage nested Theil decomposition method," The Annals of Regional Science, Springer, vol. 37(1), pages 55-77, 02. [Downloadable!] (restricted)
  7. repec:pal:easeco:v:26:y:2000:i:1:p:61-74 is not listed on IDEAS
  8. Pedro Conceicao & James K. Galbraith, 2000. "Constructing Long and Dense Time-Series of Inequality Using the Theil Index," Eastern Economic Journal, Eastern Economic Association, vol. 26(1), pages 61-74, Winter. [Downloadable!]
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