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Multilevel interterritorial convergence and additive multidimensional inequality decomposition

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  • Rafael Salas

    () (Departamento de Fundamentos del Análisis Económico I, Universidad Complutense de Madrid, Campus de Somosaguas, 28223 Madrid, Spain)

Abstract

In this paper we justify the use of the between-groups S-convex relative inequality indices to measure interterritorial convergence. In addition, we provide two appealing extensions to the use of the additive decomposable General Entropy inequality indices. First, multilevel decomposition along several subpartitions is satisfied and a natural application to convergence decomposition along different territorial level arises. Second, further general inequality decomposition along several dimensions is also satisfied. Thus, this framework provides a better explanation of the determinants of convergence (and inequality) when it is decomposed into different dimensions in comparison with other indices available in the literature.

Suggested Citation

  • Rafael Salas, 2002. "Multilevel interterritorial convergence and additive multidimensional inequality decomposition," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 19(1), pages 207-218.
  • Handle: RePEc:spr:sochwe:v:19:y:2002:i:1:p:207-218
    Note: Received: 21 May 1999/Accepted: 21 September 2000
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    1. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-625, April.
    2. Creedy, John, 1977. "The Principle of Transfers and the Variance of Logarithms," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 39(2), pages 153-158, May.
    3. Robert J. Barro & Xavier Sala-i-Martin, 1990. "Economic Growth and Convergence across The United States," NBER Working Papers 3419, National Bureau of Economic Research, Inc.
    4. Dasgupta, Partha & Sen, Amartya & Starrett, David, 1973. "Notes on the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 6(2), pages 180-187, April.
    5. Wodon, Quentin T, 1999. "Between Group Inequality and Targeted Transfers," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 45(1), pages 21-39, March.
    6. Shorrocks, Anthony F, 1983. "Ranking Income Distributions," Economica, London School of Economics and Political Science, vol. 50(197), pages 3-17, February.
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    Cited by:

    1. Mornet, Pauline & Zoli, Claudio & Mussard, Stéphane & Sadefo-Kamdem, Jules & Seyte, Françoise & Terraza, Michel, 2013. "The (α, β)-multi-level α-Gini decomposition with an illustration to income inequality in France in 2005," Economic Modelling, Elsevier, vol. 35(C), pages 944-963.
    2. Rafael Salas, "undated". "Convergencia, movilidad y redistribuciÛn interregional en Espana: 1981-1996," Studies on the Spanish Economy 40, FEDEA.
    3. Stéphane Mussard & Françoise Seyte & Michel Terraza, 2006. "La décomposition de l’indicateur de Gini en sous-groupes : une revue de la littérature," Cahiers de recherche 06-11, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
    4. Kazuhiko Kakamu & Mototsugu Fukushige, 2009. "Multilevel Decomposition Methods For Income Inequality Measures," The Japanese Economic Review, Japanese Economic Association, vol. 60(3), pages 333-344.
    5. Benito , Juan Miguel & Ezcurra, Roberto, 2004. "Spatial disparities in the European Union: national and sectoral elements," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 4, pages 75-98.

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