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Bonferroni And De Vergottini Are Back: New Subgroup Decompositions And Bipolarization Measures

Author

Listed:
  • Mariateresa Ciommi

    (Universita' Politecnica delle Marche)

  • Chiara Gigliarano

    (Universita' degli Studi dell'Insubria)

  • Giovanni Maria Giorgi

    (Sapienza Universita' di Roma)

Abstract

Aim of this paper is to propose new bipolarization indices based on he Bonferroni and De Vergottini indices of inequality.The new bipolarization indices follow the approach of Foster and Wolfson and are based on new subgroup decomposition of Bonferroni and De Vergottini indices of inequality. We also provide the conditions under which the new polarization indices satisfy the Increased Spread and Increased Bipolarity axioms. Finally, a simulation study has been carried out to compare the different sensitivity of the new bipolarization indices to progressive transfers. Also, an empirical application based on EU-SILC data for Italy ober the period 2007-2011 show the appeal of our proposal.

Suggested Citation

  • Mariateresa Ciommi & Chiara Gigliarano & Giovanni Maria Giorgi, 2019. "Bonferroni And De Vergottini Are Back: New Subgroup Decompositions And Bipolarization Measures," Working Papers 439, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  • Handle: RePEc:anc:wpaper:439
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    More about this item

    Keywords

    Bonferroni index; De Vergottini index; Gini index; In-equality; Subgroup decomposition; Polarization measurement.;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • 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
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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