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Comparing Multidimensional Indices of Inequality: methods and application

Author

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  • Maria Ana Lugo

    () (Department of Economics, University of Oxford)

Abstract

The paper provides an examination into the measures of multidimensional inequality proposed in the past few years, their properties and majorization criteria. It offers a generalisation of Bourguignon index proposed so that it includes Tsui measures (1999) while preserving the virtues of Maasoumi’s method (1986) of explicitly acknowledging the role of parameters relevant of multivariate settings. An application to the Argentine data is provided to illustrate the decisions involved in the process of applying these measures and the usefulness of having appropriate criteria for the choice.

Suggested Citation

  • Maria Ana Lugo, 2005. "Comparing Multidimensional Indices of Inequality: methods and application," Working Papers 14, ECINEQ, Society for the Study of Economic Inequality.
  • Handle: RePEc:inq:inqwps:ecineq2005-14
    as

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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2005-14.pdf
    File Function: First version, 2005
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    References listed on IDEAS

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    1. repec:sbe:breart:v:21:y:2001:i:2:a:2751 is not listed on IDEAS
    2. Eva Camacho-Cuena & Tibor Neugebauer & Christian Seidl, 2007. "Leaky Buckets Versus Compensating Justice: An Experimental Investigation," Working Papers 74, ECINEQ, Society for the Study of Economic Inequality.
    3. Bossert, Walter & Pfingsten, Andreas, 1990. "Intermediate inequality: concepts, indices, and welfare implications," Mathematical Social Sciences, Elsevier, vol. 19(2), pages 117-134, April.
    4. Dagum, Camilo, 1990. "On the relationship between income inequality measures and social welfare functions," Journal of Econometrics, Elsevier, pages 91-102.
    5. Kolm, Serge-Christophe, 1976. "Unequal inequalities. II," Journal of Economic Theory, Elsevier, vol. 13(1), pages 82-111, August.
    6. Amiel, Yoram & Cowell, Frank A., 1992. "Measurement of income inequality : Experimental test by questionnaire," Journal of Public Economics, Elsevier, pages 3-26.
    7. Coral del RÎo & Javier Ruiz-Castillo, 2000. "Intermediate inequality and welfare," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 17(2), pages 223-239.
    8. Christian Seidl, 2001. "Inequality measurement and the leaky-bucket paradox," Economics Bulletin, AccessEcon, vol. 4(6), pages 1-7.
    9. Kolm, Serge-Christophe, 1976. "Unequal inequalities. I," Journal of Economic Theory, Elsevier, vol. 12(3), pages 416-442, June.
    10. Peter Lambert & Giuseppe Lanza, 2006. "The effect on inequality of changing one or two incomes," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, pages 253-277.
    11. Blackorby, Charles & Donaldson, David, 1978. "Measures of relative equality and their meaning in terms of social welfare," Journal of Economic Theory, Elsevier, vol. 18(1), pages 59-80, June.
    12. Buhong Zheng, 2007. "Unit-Consistent Decomposable Inequality Measures," Economica, London School of Economics and Political Science, vol. 74(293), pages 97-111, February.
    13. Harrison, Elizabeth & Seidl, Christian, 1994. "Perceptional Inequality and Preferential Judgements: An Empirical Examination of Distributional Axioms," Public Choice, Springer, vol. 79(1-2), pages 61-81, April.
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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. 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.
    3. Abdelkrim Araar, 2009. "The Hybrid Multidimensional Index of Inequality," Cahiers de recherche 0945, CIRPEE.
    4. Stefanescu, Stefan V., 2011. "About the Accuracy of Gini Index for Measuring the Poverty," Journal for Economic Forecasting, Institute for Economic Forecasting, pages 255-266.
    5. 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.
    6. Lin Yang, 2017. "The relationship between poverty and inequality: Concepts and measurement," CASE Papers /205, Centre for Analysis of Social Exclusion, LSE.
    7. Suman Seth, "undated". "A Class of Association Sensitive Multidimensional Welfare Indices," OPHI Working Papers ophiwp027, Queen Elizabeth House, University of Oxford.
    8. 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, pages 349-370.
    9. 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.
    10. repec:ebl:ecbull:eb-16-00736 is not listed on IDEAS
    11. Brad, Anca Maria, 2012. "The impact of tax policy on the welfare state," MPRA Paper 40347, University Library of Munich, Germany.
    12. 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.
    13. Aristei, David & Perugini, Cristiano, 2010. "Preferences for redistribution and inequality in well-being across Europe," Journal of Policy Modeling, Elsevier, pages 176-195.

    More about this item

    Keywords

    Inequalities; Multidimensional Distributions; Well-being; Multivariate indices.;

    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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