IDEAS home Printed from https://ideas.repec.org/a/spr/lsprsc/v10y2017i2d10.1007_s12076-016-0178-2.html
   My bibliography  Save this article

What values of Moran’s I and Theil index decomposition really mean under different conditions: on the issue of interpretation

Author

Listed:
  • Vojtěch Nosek

    (Charles University in Prague)

  • Pavlína Netrdová

    (Charles University in Prague)

Abstract

In recent decades, improved methodological apparatuses and increased data availability have enhanced data analyses in social sciences. Moreover, complex analyses using sophisticated methods take just a matter of seconds nowadays thanks to highly powerful software. However, such methods are often poorly understood from a methodological point of view despite the fact that knowledge of their specific properties is crucial to accurately interpreting the results. In this paper we study methods of spatial aspects of variability and examine a specific property of such methods to demonstrate how it can affect the final interpretation. By modelling data in a regular 100 by 100 grid as well as empirical examples from Czechia based on data from the 2011 Czech census, this paper presents possible interpretation-biases and recommendations for how to avoid them. We use the example of spatial autocorrelation (measured by Moran’s I) and variability decomposition (measured by the Theil index); two basic methods which enable us to measure variability in regions and in space.

Suggested Citation

  • Vojtěch Nosek & Pavlína Netrdová, 2017. "What values of Moran’s I and Theil index decomposition really mean under different conditions: on the issue of interpretation," Letters in Spatial and Resource Sciences, Springer, vol. 10(2), pages 149-159, July.
    • Handle: RePEc:spr:lsprsc:v:10:y:2017:i:2:d:10.1007_s12076-016-0178-2
    DOI: 10.1007/s12076-016-0178-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12076-016-0178-2
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12076-016-0178-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-625, April.
    2. Josef Novotný & Vojtěch Nosek, 2012. "Comparison of regional inequality in unemployment among four Central European countries: an inferential approach," Letters in Spatial and Resource Sciences, Springer, vol. 5(2), pages 95-101, July.
    3. Anthony Shorrocks & Guanghua Wan, 2005. "Spatial decomposition of inequality," Journal of Economic Geography, Oxford University Press, vol. 5(1), pages 59-81, January.
    4. James E. Foster & Efe A. Ok, 1999. "Lorenz Dominance and the Variance of Logarithms," Econometrica, Econometric Society, vol. 67(4), pages 901-908, July.
    5. Silber, Jacques, 1989. "Factor Components, Population Subgroups and the Computation of the Gini Index of Inequality," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 107-115, February.
    6. Sergio Rey & Richard Smith, 2013. "A spatial decomposition of the Gini coefficient," Letters in Spatial and Resource Sciences, Springer, vol. 6(2), pages 55-70, July.
    7. Takahiro Akita, 2000. "Decomposing Regional Income Inequality Using Two-Stage Nested Theil Decomposition Method," Working Papers EMS_2000_02, Research Institute, International University of Japan.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Builes-Jaramillo, Alejandro & Lotero, Laura, 2020. "Closeness matters. Spatial autocorrelation and relationship between socioeconomic indices and distance to departmental Colombian capitals," Socio-Economic Planning Sciences, Elsevier, vol. 70(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Miguel A. Márquez & Elena Lasarte & Marcelo Lufin, 2019. "The Role of Neighborhood in the Analysis of Spatial Economic Inequality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(1), pages 245-273, January.
    2. I. Josa & A. Aguado, 2020. "Measuring Unidimensional Inequality: Practical Framework for the Choice of an Appropriate Measure," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 149(2), pages 541-570, June.
    3. Pupato, Germán, 2017. "Performance pay, trade and inequality," Journal of Economic Theory, Elsevier, vol. 172(C), pages 478-504.
    4. Luc Savard & Stéphane Mussard, 2005. "Micro-simulation and Multi-decomposition: A Case Study: Philippines," Cahiers de recherche 05-02, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    5. Teixidó-Figueras, J. & Duro, J.A., 2014. "Spatial Polarization of the Ecological Footprint Distribution," Ecological Economics, Elsevier, vol. 104(C), pages 93-106.
    6. Magne Mogstad, 2007. "Measuring Income Inequality under Restricted Interpersonal Comparability," Discussion Papers 498, Statistics Norway, Research Department.
    7. Stéphane Mussard & Pi Alperin María Noel & Françoise Seyte & Michel Terraza, 2005. "Extensions Of Dagum’S Gini Decomposition," Cahiers de recherche 05-07, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    8. Umut Türk & John Östh, 2023. "Introducing a spatially explicit Gini measure for spatial segregation," Journal of Geographical Systems, Springer, vol. 25(4), pages 469-488, October.
    9. Mussard, Stéphane & Pi Alperin, Maria Noel, 2011. "Poverty growth in Scandinavian countries: A Sen multi-decomposition," Economic Modelling, Elsevier, vol. 28(6), pages 2842-2853.
    10. Radwan Shaban & Hiromi Asoaka & Bob Barnes & Vladimir Drebentsov & John Langenbrunner & Sajaia Zurab & James Stevens & David Tarr & Emil Tesliuc & Olga Shabalina & Ruslan Yemtsov, 2006. "Reducing Poverty through Growth and Social Policy Reform in Russia," World Bank Publications - Books, The World Bank Group, number 6955, December.
    11. Mitsuhiro Hayashi & Mitsuhiko Kataoka & Takahiro Akita, 2014. "Expenditure Inequality in Indonesia, 2008–2010: A Spatial Decomposition Analysis and the Role of Education," Asian Economic Journal, East Asian Economic Association, vol. 28(4), pages 389-411, December.
    12. Stéphane Mussard, 2007. "Between-Group Pigou Dalton Transfers," Cahiers de recherche 07-06, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    13. Kazi Arif Uz Zaman & Takahiro Akita, 2011. "Spatial Dimensions of Income Inequality and Poverty in Bangladesh: An Analysis of the 2005 Household Income and Expenditure Survey Data," Working Papers EMS_2011_20, Research Institute, International University of Japan.
    14. Chris Elbers & Peter Lanjouw & Johan Mistiaen & Berk Özler, 2008. "Reinterpreting between-group inequality," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 6(3), pages 231-245, September.
    15. Niehues, Judith & Peichl, Andreas, 2011. "Lower and Upper Bounds of Unfair Inequality: Theory and Evidence for Germany and the US," IZA Discussion Papers 5834, Institute of Labor Economics (IZA).
    16. Takahiro Akita & Sachiko Miyata, 2018. "Spatial Inequalities in Indonesia, 1996–2010: A Hierarchical Decomposition Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(3), pages 829-852, August.
    17. Mariateresa Ciommi & Chiara Gigliarano & Giovanni Maria Giorgi, 2019. "Bonferroni And De Vergottini Are Back: New Subgroup Decompositions And Bipolarization Measures," Working Papers 439, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    18. Foster, James E. & Shneyerov, Artyom A., 2000. "Path Independent Inequality Measures," Journal of Economic Theory, Elsevier, vol. 91(2), pages 199-222, April.
    19. Perdamen Sagala & Takahiro Akita & Arief Yusuf, 2014. "Urbanization and expenditure inequality in Indonesia: testing the Kuznets hypothesis with provincial panel data," Letters in Spatial and Resource Sciences, Springer, vol. 7(3), pages 133-147, October.
    20. Judith Niehues & Andreas Peichl, 2012. "Bounds of Unfair Inequality of Opportunity: Theory and Evidence for Germany and the US," CESifo Working Paper Series 3815, CESifo.

    More about this item

    Keywords

    Regional variability; Spatial autocorrelation; Interpretation; Theil index; Moran’s I;
    All these keywords.

    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)
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:lsprsc:v:10:y:2017:i:2:d:10.1007_s12076-016-0178-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.