What are we assuming when using inequality measures to quantify geographic concentration? An axiomatic approach
AbstractThis paper formally shows the parallel that exists between inequality and spatial concentration measurement. This examination allows us to unveil the properties that the literature is implicitly assuming when using inequality measures to quantify the spatial concentration of economic activity. Thus, the properties satisfied by the Gini index and the generalized entropy family when using them to analyze location patterns are shown. In addition, another inequality-based concentration measure is proposed. Finally, the basic properties of the concentration measurement when using “employment Lorenz curves” are unveiled, and additive decompositions of these curves are proposed.
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Bibliographic InfoPaper provided by Universidade de Vigo, Departamento de Economía Aplicada in its series Working Papers with number 0801.
Length: 34 pages
Date of creation: May 2008
Date of revision:
Inequality measures; Segregation; Geographic concentration; Axioms;
Find related papers by JEL classification:
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
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