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Comparing Multidimensional Indices of Inequality: methods and application

In: Inequality and Poverty

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  • María Ana Lugo

Abstract

The paper examines several measures of multidimensional inequality, analysing their properties and majorisation criteria. Moreover, it presents a new measure which generalises Bourguignon (1999) and includes Tsui measures (1999), while preserving the advantages of Maasoumi's method (1986) of explicitly acknowledging the role of parameters relevant to multivariate settings. Finally, an application to Argentine data is provided in order to illustrate the decisions involved in the process of applying these measures and the usefulness of having appropriate criteria when making those decisions.

Suggested Citation

  • María Ana Lugo, 2007. "Comparing Multidimensional Indices of Inequality: methods and application," Research on Economic Inequality, in: Inequality and Poverty, pages 213-236, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:reinzz:s1049-2585(06)14010-7
    DOI: 10.1016/S1049-2585(06)14010-7
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    Citations

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    Cited by:

    1. Maria Ana Lugo & Esfandiar Maasoumi, 2008. "Multidimensional Poverty Measures from an Information Theory Perspective," Working Papers 85, ECINEQ, Society for the Study of Economic Inequality.
    2. Yang, Lin, 2018. "Measuring well-being: a multidimensional index integrating subjective well-being and preferences," LSE Research Online Documents on Economics 87789, London School of Economics and Political Science, LSE Library.
    3. Croci Angelini, Elisabetta & Michelangeli, Alessandra, 2012. "Axiomatic measurement of multidimensional well-being inequality: Some distributional questions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 548-557.
    4. Abdelkrim Araar, 2009. "The Hybrid Multidimensional Index of Inequality," Cahiers de recherche 0945, CIRPEE.
    5. Stefanescu, Stefan V., 2011. "About the Accuracy of Gini Index for Measuring the Poverty," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 255-266, September.
    6. Markus Jäntti & Eva M. Sierminska & Philippe Van Kerm, 2015. "Modeling the Joint Distribution of Income and Wealth," Research on Economic Inequality, in: Measurement of Poverty, Deprivation, and Economic Mobility, volume 23, pages 301-327, Emerald Group Publishing Limited.
    7. Andrea Brandolini, 2008. "On applying synthetic indices of multidimensional well-being: health and income inequalities in selected EU countries," Temi di discussione (Economic working papers) 668, Bank of Italy, Economic Research and International Relations Area.
    8. Lin Yang, 2017. "The relationship between poverty and inequality: Concepts and measurement," CASE Papers /205, Centre for Analysis of Social Exclusion, LSE.
    9. Suman Seth, 2009. "A Class of Association Sensitive Multidimensional Welfare Indices," OPHI Working Papers 27, Queen Elizabeth House, University of Oxford.
    10. Barbosa, Estela Capelas & Cookson, Richard, 2019. "Multiple inequity in health care: An example from Brazil," Social Science & Medicine, Elsevier, vol. 228(C), pages 1-8.
    11. Matheus Pereira Libório & Elisa Fusco & Alexandre Magno Alves Diniz & Oséias da Silva Martinuci & Petr Iakovlevitch Ekel, 2024. "A Novel Approach for Multispatial and Multitemporal Analysis of Composite Indicators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 173(3), pages 783-800, July.
    12. Sebastian Leitner & Robert Stehrer, 2011. "Subgroup and Shapley Value Decompositions of Multidimensional Inequality – An Application to Southeast European Countries," wiiw Working Papers 74, The Vienna Institute for International Economic Studies, wiiw.
    13. Rosa Bernardini Papalia & Pinuccia Calia & Carlo Filippucci, 2015. "Information Theoretic Competitiveness Composite Indicator at Micro Level," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 123(2), pages 349-370, September.
    14. Boniface Ngah Epo & Francis Menjo Baye & Nadine Teme Angele Manga, 2011. "Spatial and Inter-temporal Sources of Poverty, Inequality and Gender Disparities in Cameroon: a Regression-Based Decomposition Analysis," Working Papers PMMA 2011-15, PEP-PMMA.
    15. Ottó Hajdu, 2021. "A New Generalized Variance Approach for Measuring Multidimensional Inequality and Poverty," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 158(3), pages 839-861, December.
    16. Yang, Lin, 2017. "The relationship between poverty and inequality: concepts and measurement," LSE Research Online Documents on Economics 103491, London School of Economics and Political Science, LSE Library.
    17. Junhua Chen & Shufan Ma & Na Liu, 2023. "Multi-dimensional Housing Inequality Index: The Provincial Evidence from China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 165(2), pages 633-654, January.
    18. Jorge A. Bonilla & Claudia Aravena & Ricardo Morales-Betancourt, 2023. "Assessing Multiple Inequalities and Air Pollution Abatement Policies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(3), pages 695-727, March.
    19. Lin Yang, 2017. "Measuring individual well-being: A multidimensional index integrating subjective well-being and preferences," CASE Papers /202, Centre for Analysis of Social Exclusion, LSE.
    20. Ritabrata Munshi & Soumyanetra Munshi, 2017. "An $L^p$-norm based approach to measuring inter-distributional inequality," Economics Bulletin, AccessEcon, vol. 37(2), pages 1113-1121.
    21. Yang, Lin, 2017. "Measuring individual well-being: A multidimensional index integrating subjective well-being and preferences," LSE Research Online Documents on Economics 103495, London School of Economics and Political Science, LSE Library.
    22. Brad, Anca Maria, 2012. "The impact of tax policy on the welfare state," MPRA Paper 40347, University Library of Munich, Germany.
    23. Andrea Brandolini, 2007. "On Synthetic Indices Of Multidimensional Well-Being: Health And Income Inequalities In France, Germany, Italy And The United Kingdom," CHILD Working Papers wp07_07, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
    24. Nicholas Rohde & Ross Guest, 2013. "Multidimensional Racial Inequality in the United States," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 114(2), pages 591-605, November.
    25. Aristei, David & Perugini, Cristiano, 2010. "Preferences for redistribution and inequality in well-being across Europe," Journal of Policy Modeling, Elsevier, vol. 32(2), pages 176-195, March.

    More about this item

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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