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Inequality factor decomposition under uniform additions property with applications to Cameroonian rural data

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  • C. Chameni Nembua

Abstract

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.

Suggested Citation

  • C. Chameni Nembua, 2012. "Inequality factor decomposition under uniform additions property with applications to Cameroonian rural data," Applied Economics Letters, Taylor & Francis Journals, vol. 19(14), pages 1365-1371, September.
  • Handle: RePEc:taf:apeclt:v:19:y:2012:i:14:p:1365-1371
    DOI: 10.1080/13504851.2011.629976
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    References listed on IDEAS

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    1. Wan, Guanghua, 2002. "Regression-based Inequality Decomposition: Pitfalls and a Solution Procedure," WIDER Working Paper Series 101, World Institute for Development Economic Research (UNU-WIDER).
    2. Jonathan Morduch & Terry Sicular, 2002. "Rethinking Inequality Decomposition, With Evidence from Rural China," Economic Journal, Royal Economic Society, vol. 112(476), pages 93-106, January.
    3. Cowell, Frank & Fiorio, Carlo V., 2006. "Rethinking inequality decomposition: comment," LSE Research Online Documents on Economics 3782, London School of Economics and Political Science, LSE Library.
    4. Lerman, Robert I & Yitzhaki, Shlomo, 1985. "Income Inequality Effects by Income," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 151-156, February.
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    More about this item

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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