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Measuring regional inequality: to weight or not to weight?

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  • Konstantin Gluschenko

Abstract

Measuring regional inequality: to weight or not to weight? Spatial Economic Analysis. When estimating regional inequality, many economists use inequality indices weighted by regions’ proportion of the national population. Although this approach is widespread, its adequacy has not received attention in the regional science literature. This paper proves that such an approach is conceptually inconsistent, yielding an estimate of interpersonal inequality among the whole population of the country rather than an estimate of regional inequality. Nevertheless, as a measure of interpersonal inequality, such an estimate is very rough (even misleading) and does not always have an intuitive interpretation. Moreover, population-weighted inequality indices do not meet the requirements for an adequate measure of inequality.

Suggested Citation

  • Konstantin Gluschenko, 2018. "Measuring regional inequality: to weight or not to weight?," Spatial Economic Analysis, Taylor & Francis Journals, vol. 13(1), pages 36-59, January.
    • Handle: RePEc:taf:specan:v:13:y:2018:i:1:p:36-59
    DOI: 10.1080/17421772.2017.1343491
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    Cited by:

    1. Hasan Engin Duran, 2024. "The future of regional inequalities: an ARIMA forecast," Letters in Spatial and Resource Sciences, Springer, vol. 17(1), pages 1-12, December.
    2. Jianxu Liu & Xiaoqing Li & Yansong Li & Jirakom Sirisrisakulchai & Xuefei Kang & Jiande Cui, 2024. "Decomposition and Driving Factors of Total Factor Productivity of Food Crops in the Yellow River Basin, China," Agriculture, MDPI, vol. 14(4), pages 1-24, March.
    3. Ousmane Traoré, 2021. "The relationship between health poverty and income poverty in Sub-Saharan African countries: evidence from index correlations," SN Business & Economics, Springer, vol. 1(10), pages 1-19, October.
    4. Paolo Postiglione & Alfredo Cartone & Domenica Panzera, 2020. "Economic Convergence in EU NUTS 3 Regions: A Spatial Econometric Perspective," Sustainability, MDPI, vol. 12(17), pages 1-17, August.
    5. Ilya V. Naumov & Vladislav M. Sedelnikov, 2021. "Scenario modelling and forecasting of spatial transformation in the Russian catering market," Upravlenets, Ural State University of Economics, vol. 12(4), pages 75-91, September.
    6. Thomas Wieland, 2020. "REAT: A Regional Economic Analysis Toolbox for R," REGION, European Regional Science Association, vol. 7, pages 1-57.
    7. Zheng, Shiming & Yao, Rongrong & Zou, Ke, 2022. "Provincial environmental inequality in China: Measurement, influence, and policy instrument choice," Ecological Economics, Elsevier, vol. 200(C).
    8. Ana María López-Villuendas & Cristina del Campo, 2023. "Regional Economic Disparities in Europe: Time-Series Clustering of NUTS 3 Regions," International Regional Science Review, , vol. 46(3), pages 265-298, May.
    9. Amir Hatamkhani & Ali Moridi, 2021. "Optimal Development of Agricultural Sectors in the Basin Based on Economic Efficiency and Social Equality," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 35(3), pages 917-932, February.
    10. Ilya V. Naumov & Vladislav M. Sedelnikov, 2021. "Interregional relationships in the Russian dairy market: Spatial growth poles," Journal of New Economy, Ural State University of Economics, vol. 22(3), pages 103-124, October.
    11. Wenzheng Li & Stephan Schmidt & Stefan Siedentop, 2024. "Can polycentric urban development simultaneously achieve both economic growth and regional equity? A multi-scale analysis of German regions," Environment and Planning A, , vol. 56(2), pages 525-545, March.
    12. Shifa, Muna & Leibbrandt, Murray, 2021. "Spatial Inequality in Sub-Saharan Africa," EconStor Preprints 244591, ZBW - Leibniz Information Centre for Economics.
    13. Ousmane Traoré, 2022. "The effect of income on health: evidence from the poverty gaps analysis method in the sub-Saharan Africa," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(3), pages 401-432, September.
    14. Kolomak, E. A., 2020. "Economic effects of pandemic-related restrictions in Russia and their spatial heterogeneity," R-Economy, Ural Federal University, Graduate School of Economics and Management, vol. 6(3), pages 154-161.
    15. Feng Wang & HaiYing Wang & Jun Yan, 2023. "Diagnostic Tests for the Necessity of Weight in Regression With Survey Data," International Statistical Review, International Statistical Institute, vol. 91(1), pages 55-71, April.
    16. Rok Hrzic & Tobias Vogt & Helmut Brand & Fanny Janssen, 2021. "The Short-Term Effects of European Integration on Mortality Convergence: A Case Study of European Union’s 2004 Enlargement," European Journal of Population, Springer;European Association for Population Studies, vol. 37(4), pages 909-931, November.

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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