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The bidimensional decomposition of the Gini ratio. A case study: Italy

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  • Stephane Mussard

Abstract

This research is based on the decompositions of the Gini index. The two existing procedures of decomposition are connected: subgroup decomposition and income source decomposition. This bidimensional decomposition enables the computation of some new determinants of inequalities. It is possible to reckon the contribution of each source to the within-group and the between-group components of the overall inequality. This bidimensional decomposition is applied to the Italian consumption in 1989 and 2000.

Suggested Citation

  • Stephane Mussard, 2004. "The bidimensional decomposition of the Gini ratio. A case study: Italy," Applied Economics Letters, Taylor & Francis Journals, vol. 11(8), pages 503-505.
  • Handle: RePEc:taf:apeclt:v:11:y:2004:i:8:p:503-505
    DOI: 10.1080/1350485042000244530
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    References listed on IDEAS

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    1. Wagstaff, Adam & van Doorslaer, Eddy & Watanabe, Naoko, 2003. "On decomposing the causes of health sector inequalities with an application to malnutrition inequalities in Vietnam," Journal of Econometrics, Elsevier, vol. 112(1), pages 207-223, January.
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    Cited by:

    1. Cecilia García-Peñalosa & Elsa Orgiazzi, 2013. "Factor Components of Inequality: A Cross-Country Study," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59(4), pages 689-727, December.
    2. 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.
    3. Mazyaki, Ali & Davodi, Pedram, 2014. "Decomposition of welfare distribution in Iran," MPRA Paper 59552, University Library of Munich, Germany.
    4. Stéphane Mussard & Kuan Xu, 2006. "Multidimensional Decomposition of the Sen Index: Some Further Thoughts," Cahiers de recherche 06-08, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
    5. Stéphane Mussard & Pi Alperin María Noel, 2006. "Measuring Significance of Inequalities with Heterogeneous Groups and Income Sources," Cahiers de recherche 06-13, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
    6. Cecilia Garcia Peñalosa & Orgiazzi, E., 2011. "GINI DP 12: Factor Components of Inequality. A Cross-Country Study," GINI Discussion Papers 12, AIAS, Amsterdam Institute for Advanced Labour Studies.
    7. Stéphane Mussard & Michel Terraza, 2009. "Décompositions des mesures d'inégalité : le cas des coefficients de Gini et d'entropie," Recherches économiques de Louvain, De Boeck Université, vol. 75(2), pages 151-181.
    8. Ogwang Tomson, 2016. "The Marginal Effects in Subgroup Decomposition of the Gini Index," Journal of Official Statistics, De Gruyter Open, vol. 32(3), pages 733-745, September.
    9. Takahiro Akita & Puji Agus Kurniawan & Sachiko Miyata, 2011. "Structural Changes and Regional Income Inequality in Indonesia: A Bidimensional Decomposition Analysis," Asian Economic Journal, East Asian Economic Association, vol. 25(1), pages 55-77, March.
    10. Takahiro Akita & Sachiko Miyata, 2010. "The bi-dimensional decomposition of regional inequality based on the weighted coefficient of variation," Letters in Spatial and Resource Sciences, Springer, vol. 3(3), pages 91-100, October.
    11. Cecilia García-Peñalosa & Richard Breen & Elsa Orgiazzi, 2008. "Factor Components of Inequality: Cross-Country Differences and Time Changes," LIS Working papers 503, LIS Cross-National Data Center in Luxembourg.
    12. Mauro Mussini, 2010. "On the Link between Silber and Dagum Decomposition of the Gini Index," Statistics in Transition new series, Główny Urząd Statystyczny (Polska), vol. 11(3), pages 597-614, December.
    13. C. Chameni Nembua, 2007. "The multi-decomposition of the Hirschman-Herfindahl index: measuring household inequality in Cameroon, 1996-2001," Applied Economics Letters, Taylor & Francis Journals, vol. 14(1), pages 27-34.
    14. Chameni Nembua, Célestin, 2008. "Measuring and explaining economic inequality: An extension of the Gini coefficient," MPRA Paper 31242, University Library of Munich, Germany, revised 2010.
    15. Jurkatis, Simon & Strehl, Wolfgang, 2014. "Gini decompositions and Gini elasticities: On measuring the importance of income sources and population subgroups for income inequality," Discussion Papers 2014/22, Free University Berlin, School of Business & Economics.
    16. C. Chameni Nembua, 2005. "A three components subgroup decomposition of the Hirschman-Herfindahl index and household's income inequalities in Cameroon," Applied Economics Letters, Taylor & Francis Journals, vol. 12(15), pages 941-947.
    17. repec:csb:stintr:v:12:y:2010:i:3:p:597-614 is not listed on IDEAS
    18. Michele Giammatteo, 2007. "The bidimensional decomposition of inequality: A nested Theil approach," LIS Working papers 466, LIS Cross-National Data Center in Luxembourg.

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