Inequality factor decomposition under uniform additions property with applications to Cameroonian rural data
In this article, we generalize and extend the Morduch and Sicular's (2002) Coefficient of Variation (CV)-squared decomposition approach. This leads to a class of decomposition methods which satisfy the uniform additions principle, especially in the case of the Gini index. The regression-based method using the new formulations of component contributions is carried out. An application using Cameroonian data is provided to support the appropriateness of the procedure and to contrast our results to those of Morduch and Sicular.
Volume (Year): 19 (2012)
Issue (Month): 14 (September)
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- Jonathan Morduch & Terry Sicular, 2002.
"Rethinking Inequality Decomposition, With Evidence from Rural China,"
Royal Economic Society, vol. 112(476), pages 93-106, January.
- Jonathan Morduch & Terry Sicular, 1998. "Rethinking Inequality Decomposition, with Evidence from Rural China," Harvard Institute of Economic Research Working Papers 1831, Harvard - Institute of Economic Research.
- Frank A Cowell & Carlo V. Fiorio, 2006.
"Rethinking Inequality Decomposition:Comment,"
STICERD - Distributional Analysis Research Programme Papers
82, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Lerman, Robert I & Yitzhaki, Shlomo, 1985. "Income Inequality Effects by Income," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 151-56, February.
- Wan, Guanghua, 2002. "Regression-based Inequality Decomposition: Pitfalls and a Solution Procedure," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
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