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Multidimensional Decomposition of the Sen Index: Some Further Thoughts

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Author Info
Stéphane Mussard () (GREDI, Université de Sherbrooke and GEREM, Université de Perpignan)
Kuan Xu () (Department of Economics, Dalhousie University, Halifax, Canada)

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Abstract

Given the multiplicative decomposition of the Sen index into three commonly used poverty statistics – the poverty rate (poverty incidence), poverty gap ratio (poverty depth) and 1 plus the Gini index of poverty gap ratios of the poor (inequality of poverty) – the index becomes much easier to use and to interpret for economists, policy analysts and decision makers. Based on the recent findings on simultaneous subgroup and source decomposition of the Gini index, we examine possible further decompositions of the Sen index and its components for policy analysis.

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File URL: http://pages.usherbrooke.ca/gredi/wpapers/GREDI-0608.pdf
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File Function: First version, 2006
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Publisher Info
Paper provided by Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number 06-08.

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Length: 20 pages
Date of creation: 2006
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Handle: RePEc:shr:wpaper:06-08

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Related research
Keywords: Gini index; Sen index; Source decomposition; Subgroup decomposition;

Find related papers by JEL classification:
I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Foster, James E & Shorrocks, Anthony F, 1991. "Subgroup Consistent Poverty Indices," Econometrica, Econometric Society, vol. 59(3), pages 687-709, May. [Downloadable!] (restricted)
  2. Dagum, Camilo, 1997. "A New Approach to the Decomposition of the Gini Income Inequality Ratio," Empirical Economics, Springer, vol. 22(4), pages 515-31.
  3. Chantreuil, F. & Trannoy, A., 1999. "Inequality Decomposition Values: the Trade-Off Between Marginality and Consistency," Papers 99-24, Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor..
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  4. Lambert, Peter J & Aronson, J Richard, 1993. "Inequality Decomposition Analysis and the Gini Coefficient Revisited," Economic Journal, Royal Economic Society, vol. 103(420), pages 1221-27, September. [Downloadable!] (restricted)
  5. Yitzhaki, Shlomo & Lerman, Robert I, 1991. "Income Stratification and Income Inequality," Review of Income and Wealth, Blackwell Publishing, vol. 37(3), pages 313-29, September.
  6. 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. [Downloadable!] (restricted)
  7. Stéphane Mussard, 2004. "The bidimensional decomposition of the Gini ratio. A case study: Italy," Applied Economics Letters, Taylor and Francis Journals, vol. 11(8), pages 503-505, June. [Downloadable!] (restricted)
  8. Silber, Jacques, 1993. "Inequality Decomposition by Income," The Review of Economics and Statistics, MIT Press, vol. 75(3), pages 545-47, August. [Downloadable!] (restricted)
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This page was last updated on 2009-11-20.

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