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The Gini multi-decomposition and the role of Gini's transvariation: application to partial trade liberalization in the Philippines

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  • Stéphane Mussard
  • Luc Savard

Abstract

This article proposes a unified technique of the Gini decomposition. The Gini multi-decomposition is a combination of the income source decomposition and the subgroup decomposition. This technique is applied on reference situation and simulated scenarios for partial trade liberalisation in Philippines, and is extended to different orderings to capture a wide range of between-group indicators. We simulate variations in income source distributions for seven educational groups in the Philippines, in order to measure the inequality variations between a reference situation and a post simulation one with positive externalities due to public expenditures on the private sector productivity.

Suggested Citation

  • Stéphane Mussard & Luc Savard, 2012. "The Gini multi-decomposition and the role of Gini's transvariation: application to partial trade liberalization in the Philippines," Applied Economics, Taylor & Francis Journals, vol. 44(10), pages 1235-1249, April.
  • Handle: RePEc:taf:applec:44:y:2012:i:10:p:1235-1249
    DOI: 10.1080/00036846.2010.539540
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    References listed on IDEAS

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    1. François Bourguignon & Maurizio Bussolo & Luiz A. Pereira da Silva, 2008. "The Impact of Macroeconomic Policies on Poverty and Income Distribution : Macro-Micro Evaluation Techniques and Tools," World Bank Publications, The World Bank, number 6586.
    2. Stéphane Mussard & Patrick Richard, 2012. "Linking Yitzhaki's and Dagum's Gini decompositions," Applied Economics, Taylor & Francis Journals, vol. 44(23), pages 2997-3010, August.
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    Citations

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    Cited by:

    1. 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.
    2. 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.
    3. Nickolay T. Trendafilov & Tsegay Gebrehiwot Gebru, 2016. "Recipes for sparse LDA of horizontal data," METRON, Springer;Sapienza Università di Roma, vol. 74(2), pages 207-221, August.
    4. Antonio Abatemarco, 2010. "Measuring inequality of opportunity through between-group inequality components," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(4), pages 475-490, December.
    5. repec:spr:metron:v:75:y:2017:i:2:d:10.1007_s40300-017-0115-1 is not listed on IDEAS
    6. 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.
    7. Mussini, Mauro, 2013. "On decomposing inequality and poverty changes over time: A multi-dimensional decomposition," Economic Modelling, Elsevier, vol. 33(C), pages 8-18.

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