The aim of this paper is to suggest a method to find endogenously the points that group the individuals of a given distribution in k clusters, where k is endogenously determined. These points are the cut-points. Thus, we need to determine a partition of the N individuals into a number k of groups, in such way that individuals in the same group are as alike as possible, but as distinct as possible from individuals in other groups. This method can be applied to endogenously identify k groups in income distributions: possible applications can be poverty
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Paper provided by Department of Applied Economics at Universitat Autonoma of Barcelona in its series Working Papers with number
wpdea0508.
Find related papers by JEL classification: I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty D30 - Microeconomics - - Distribution - - - General C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - General
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