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Decomposition of Regional Income Inequality and Neighborhood Component: A Spatial Theil Index

Author

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  • Elena Lasarte

    (Dpto. Economía Aplicada)

  • Miguel Angel Marquez Paniagua

    (Dpto. Economía)

Abstract

In recent decades, spatial effects have been incorporated into mainstream economics. Nevertheless, although the addition of these spatial effects to the inequality indexes would be a natural extension in this line of research, to our knowledge, there are not contributions assessing neighborhood effects in measures of regional economic inequalities. This paper proposes a Spatial Theil index that provides a decomposition of the Theil index that allows us to assess which part of regional inequalities is due to neighborhood features. The proposal is illustrated for the case of the Spanish peninsular provinces during the period 1980-2008. En las últimas décadas, los efectos espaciales se han incorporado a las principales líneas de investigación en economía. Sin embargo, a pesar de que la incorporación de dichos efectos espaciales en los índices de desigualdad sería una extensión natural de esta línea de investigación, hasta donde sabemos, no existen contribuciones que evalúen los efectos de vecindad dentro de las medidas de las desigualdades económicas regionales. En este trabajo se propone un índice de Theil espacial que proporciona una descomposición del índice de Theil que nos permite evaluar qué parte de las desigualdades regionales se debe a las características de los vecinos. La propuesta se ilustra para el caso de las provincias peninsulares españolas durante el período 1980-2008.

Suggested Citation

  • Elena Lasarte & Miguel Angel Marquez Paniagua, 2014. "Decomposition of Regional Income Inequality and Neighborhood Component: A Spatial Theil Index," Working Papers. Serie EC 2014-03, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  • Handle: RePEc:ivi:wpasec:2014-03
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    Cited by:

    1. FLORES-POLAN, María Gema & DE LA MACORRA, Luis Fernando, 2024. "Iberian Socio-Economic Characterisation In 2019 Based On Population And Gross Domestic Product Data," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 24(1), pages 1-22.

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    More about this item

    Keywords

    Descomposición de la desigualdad; desigualdad interregional. Inequality decomposition; interregional inequality.;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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