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On the axiomatization of the weakly decomposable inequality indices

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  • Mornet, Pauline

Abstract

In this paper, we focus on a decomposition property recently introduced in the inequality literature and known as the weak decomposition. Such a property provides interesting analyses by allowing one to separate the within-group contribution to total inequality from the between-group contribution. A limitation of the current method of decomposition is that, depending on the structure–absolute, relative, compromise–of the inequality index, specific weights have to be used. To avoid such a problem, we propose a unique decomposition property where the weighting functions depend on the size of the population and the mean income. This allows us to characterize a large family of weakly decomposable inequality indices without any recourse to implicit invariance value judgments.

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  • Mornet, Pauline, 2016. "On the axiomatization of the weakly decomposable inequality indices," Mathematical Social Sciences, Elsevier, vol. 83(C), pages 71-78.
    • Handle: RePEc:eee:matsoc:v:83:y:2016:i:c:p:71-78
    DOI: 10.1016/j.mathsocsci.2016.07.004
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    Cited by:

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    3. Stéphane Mussard & Pauline Mornet, 2019. "A Note on α‐Gini Measures," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 65(3), pages 675-682, September.

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