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Household Expenditure Polarization: Evidence from The Arab Region

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  • Ines Bouassida
  • AbdelRahmen El Lahga

    (Tunis Business School, University of Tunis, Tunisia)

Abstract

This paper analyzes the trend and changes of household expenditure polarization in five Arab countries between 1975 and 2006. Applying a set of recent polarization measures developed by Duclos et al. (2004) and Wolfson (1994), we find that polarization remained stable in most countries except Yemen which witnessed a significant increase of polarization during the period 1998–2006. While bi-polarization evolves in the same direction as inequality, our empirical results show that polarization per se behaves differently from inequality. The decomposition of polarization by geographical region shows that in all five countries’ household expenditures are spatially polarized, where nearly 80% of overall polarization is explained by intra-regional polarization.

Suggested Citation

  • Ines Bouassida & AbdelRahmen El Lahga, 2010. "Household Expenditure Polarization: Evidence from The Arab Region," Working Papers 559, Economic Research Forum, revised 10 Jan 2010.
  • Handle: RePEc:erg:wpaper:559
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    References listed on IDEAS

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    3. Wolfson, Michael, 1997. "Divergent Inequalities - Theory and Empirical Results (Revised Edition)," Analytical Studies Branch Research Paper Series 1997066e, Statistics Canada, Analytical Studies Branch.
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    6. Abdelkrim Araar, 2008. "On the Decomposition of Polarization Indices: Illustrations with Chinese and Nigerian Household Surveys," Cahiers de recherche 0806, CIRPEE.
    7. Wolfson, Michael C, 1997. "Divergent Inequalities: Theory and Empirical Results," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 43(4), pages 401-421, December.
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    Cited by:

    1. Rim Chatti, 2011. "Is Trade Liberalization Polarization Reducing in Tunisia?," Working Papers 636, Economic Research Forum, revised 10 Jan 2011.

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