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On Estimation of Inter-Regional Inequality

Author

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  • Konstantin Pavlovich Gluschenko

    (Institute of Economics and Industrial Engineering of the Siberian Branch of the Russian Academy of Sciences; Novosibirsk National Research State University)

Abstract

Many publications on inter-regional inequality use weighting by region’s share in the national population in estimating an inequality index. This paper demonstrates that, first, such an approach is conceptually inconsistent, yielding a (very rough) estimate of interpersonal inequality of the country’s whole population rather than an estimate of inter-regional inequality, and second, an inadequate weighting leads to the incorrect value of an inequality index. The author illustrates distortions caused by the use of weighting with the help of the income inequality among Russian regions (measured by the Gini coefficient).

Suggested Citation

  • Konstantin Pavlovich Gluschenko, 2015. "On Estimation of Inter-Regional Inequality," Spatial Economics=Prostranstvennaya Ekonomika, Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia), issue 4, pages 39-58.
  • Handle: RePEc:far:spaeco:y:2015:i:4:p:39-58
    DOI: 10.14530/se.2015.4.039-058
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