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Unit-consistency and polarization of income distributions

Author

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  • Ma Casilda Lasso de la Vega

    () (Department of Applied Economics, University of the Basque Country, Dep. Economía Aplicada)

  • Ana Urrutia

    () (Department of Applied Economics, University of the Basque Country, Dep. Economía Aplicada)

  • Henar Diez

    (Department of Applied Economics, University of the Basque Country, Dep. Economía Aplicada)

Abstract

Most of the polarization measures proposed in the literature, and likewise the inequality and poverty indices, assume some invariance condition, be that scale, translation or intermediate, which imposes value judgements on the measurement. In the inequality and poverty fields, B. Zheng suggests rejecting these invariance conditions as axioms and proposes replacing them with the unit-consistency axiom (Economica 2007, Economic Theory 2007 and Social Choice and Welfare 2007). This property demands that the inequality or poverty rankings, rather than their cardinal values, are not altered when income is measured in different monetary units. Following Zheng’s proposal we explore the consequences of the unit-consistency axiom in the polarization field and propose and characterize a class of intermediate polarization orderings which is unit-consistent.

Suggested Citation

  • Ma Casilda Lasso de la Vega & Ana Urrutia & Henar Diez, 2008. "Unit-consistency and polarization of income distributions," Working Papers 100, ECINEQ, Society for the Study of Economic Inequality.
  • Handle: RePEc:inq:inqwps:ecineq2008-100
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    References listed on IDEAS

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    1. Claudio Zoli, 2012. "Characterizing Inequality Equivalence Criteria," Working Papers 32/2012, University of Verona, Department of Economics.
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    Cited by:

    1. repec:eme:reinzz:s1049-258520170000025003 is not listed on IDEAS
    2. Fabio Clementi & Francesco Schettino, 2013. "Income polarization in Brazil, 2001-2011: A distributional analysis using PNAD data," Economics Bulletin, AccessEcon, vol. 33(3), pages 1796-1815.
    3. repec:bla:revinw:v:63:y:2017:i:4:p:608-632 is not listed on IDEAS
    4. Marek Kosny & Gaston Yalonetzky, 2016. "Relative p-bipolarisation measurement with generalised means and hybrid Lorenz curves," Working Papers 404, ECINEQ, Society for the Study of Economic Inequality.
    5. Gaston Yalonetzky, 2013. "Relative bipolarization quasi-ordering based on Between-Group Gini (BGG) curves," Working Papers 318, ECINEQ, Society for the Study of Economic Inequality.
    6. Mauro Mussini & Biancamaria Zavanella, 2015. "Measuring bipolarization in labour productivity in Italy: a new index and its decomposition by sectors and regional factors," RIVISTA DI ECONOMIA E STATISTICA DEL TERRITORIO, FrancoAngeli Editore, vol. 2015(3), pages 29-55.
    7. Gaston Yalonetzky, 2014. "Relative bipolarization Lorenz curve," Economics Bulletin, AccessEcon, vol. 34(2), pages 1103-1113.
    8. Gaston Yalonetzky, 2017. "The Necessary Requirement of Median Independence for Relative Bipolarisation Measurement," Research on Economic Inequality,in: Research on Economic Inequality, volume 25, pages 51-62 Emerald Publishing Ltd.
    9. Gaston Yalonetzky, 2017. "The Benchmark of Maximum Relative Bipolarisation," Research on Economic Inequality,in: Research on Economic Inequality, volume 25, pages 39-50 Emerald Publishing Ltd.
    10. Satya Chakravarty & Bhargav Maharaj, 2012. "Ethnic polarization orderings and indices," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 7(1), pages 99-123, May.

    More about this item

    Keywords

    Polarization Orderings; Unit-consistency;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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