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

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    Cited by:

    1. 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.
    2. Abdelkrim Araar, 2009. "The Hybrid Multidimensional Index of Inequality," Cahiers de recherche 0945, CIRPEE.
    3. 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.
    4. Sebastian Leitner & Robert Stehrer, 2011. "Subgroup and Shapely Value Decompositions of Multidimensional Inequality: An Application to South East European Countries," wiiw Balkan Observatory Working Papers 96, The Vienna Institute for International Economic Studies, wiiw.
    5. 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.
    6. 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.
    7. Brad, Anca Maria, 2012. "The impact of tax policy on the welfare state," MPRA Paper 40347, University Library of Munich, Germany.
    8. 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.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. 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.
    14. 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.
    15. 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.
    16. 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.
    17. Lin Yang, 2017. "The relationship between poverty and inequality: Concepts and measurement," CASE Papers /205, Centre for Analysis of Social Exclusion, LSE.
    18. Suman Seth, 2009. "A Class of Association Sensitive Multidimensional Welfare Indices," OPHI Working Papers 27, Queen Elizabeth House, University of Oxford.
    19. 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.
    20. 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.
    21. 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.
    22. 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.

    More about this item

    Keywords

    Inequalities; Multidimensional Distributions; Well-being; Multivariate indices.;
    All these keywords.

    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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