Decomposition of Bivariate Inequality Indices by Attributes Revisited
AbstractDecomposability of multidimensional inequality indices by attributes is considered a highly desired property. Naga and Geoffard (2006) provided for it in case of three bivariate indices. To this end, they introduced the notion of a copula function into inequality measurement theory which, as a measure of association, is a natural concept for the study of decomposability. We show that the decomposition obtained is unrelated to copulas, and prove that two indices do not admit decomposition if association is indeed measured via copula. Most notably, the proof reveals a necessary property of indices decomposable via copulas which is similar to well-known separability property.
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Bibliographic InfoPaper provided by Faculty of Economic Sciences, University of Warsaw in its series Working Papers with number 2010-07.
Length: 10 pages
Date of creation: 2010
Date of revision:
multidimensional inequality; decomposition by attributes; copula function;
Find related papers by JEL classification:
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-04-24 (All new papers)
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.:
- Abul Naga, Ramses H. & Geoffard, Pierre-Yves, 2006.
"Decomposition of bivariate inequality indices by attributes,"
Elsevier, vol. 90(3), pages 362-367, March.
- Ramses H. Abul Naga & Pierre-Yves Geoffard, 2006. "Decomposition of Bivariate Inequality Indicesby Attributes," STICERD - Distributional Analysis Research Programme Papers 83, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Ramses H. Abul Naga & Pierre-Yves Geoffard, 2005. "Decomposition of bivariate inequality indices by attributes," PSE Working Papers halshs-00590715, HAL.
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