IDEAS home Printed from https://ideas.repec.org/p/mil/wpdepa/2009-30.html
   My bibliography  Save this paper

The Gini decomposition: an alternative formulation with an application to tax reform

Author

Listed:
  • Maria Giovanna MONTI
  • Alessandro SANTORO

Abstract

particularly of its 'residual' term R, that it is based on the concept of transvariation as introduced by the Italian statistical school. This expression yields a better understanding of the idea that R measures a between-group phenomenon that is generated by inequality within groups. In fact, it is shown here that in general a change in inequality within groups may alter R, but only when the overall intensity of transvariation is also changed. Second, we apply this expression to a tax reform aimed at decreasing between-group inequality.

Suggested Citation

  • Maria Giovanna MONTI & Alessandro SANTORO, 2009. "The Gini decomposition: an alternative formulation with an application to tax reform," Departmental Working Papers 2009-30, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    • Handle: RePEc:mil:wpdepa:2009-30
    as

    Download full text from publisher

    File URL: http://wp.demm.unimi.it/files/wp/2009/DEMM-2009_030wp.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dagum, Camilo, 1980. "Inequality Measures between Income Distributions with Applications," Econometrica, Econometric Society, vol. 48(7), pages 1791-1803, November.
    2. Dagum, Camilo, 1997. "A New Approach to the Decomposition of the Gini Income Inequality Ratio," Empirical Economics, Springer, vol. 22(4), pages 515-531.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Achille VERNIZZI, 2009. "Playing with the Hadamard product in decomposing Gini, concentration, redistribution and re-ranking indexes," Departmental Working Papers 2009-50, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    2. Achille VERNIZZI & Maria Giovanna MONTI & Mauro MUSSINI, 2010. "A Gini and concentration index decomposition with an application to the APK reranking measure," Departmental Working Papers 2010-10, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano, revised 13 Dec 2010.
    3. Monti, maria & Santoro, alessandro, 2010. "Stratification and between-group inequality: a new approach to measurement," MPRA Paper 29361, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stéphane Mussard & Pi Alperin María Noel & Françoise Seyte & Michel Terraza, 2005. "Extensions Of Dagum’S Gini Decomposition," Cahiers de recherche 05-07, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    2. Achille VERNIZZI & Maria Giovanna MONTI & Marek KOSNY, 2006. "An overall inequality reducing and horizontally equitable tax system with application to Polish data," Departmental Working Papers 2006-15, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    3. Stéphane Mussard, 2006. "Une réconciliation entre la décomposition en sous-groupes et la décomposition en sources de revenu de l'indice de Gini. La multi-décomposition de l'indicateur de Gini," Annals of Economics and Statistics, GENES, issue 81, pages 169-193.
    4. Mornet, Pauline & Zoli, Claudio & Mussard, Stéphane & Sadefo-Kamdem, Jules & Seyte, Françoise & Terraza, Michel, 2013. "The (α, β)-multi-level α-Gini decomposition with an illustration to income inequality in France in 2005," Economic Modelling, Elsevier, vol. 35(C), pages 944-963.
    5. Paul Makdissi & Stéphane Mussard, 2008. "Decomposition of s-concentration curves," Canadian Journal of Economics, Canadian Economics Association, vol. 41(4), pages 1312-1328, November.
    6. repec:ebl:ecbull:v:4:y:2003:i:7:p:1-6 is not listed on IDEAS
    7. Stéphane Mussard & Françoise Seyte & Michel Terraza, 2006. "La décomposition de l’indicateur de Gini en sous-groupes : une revue de la littérature," Cahiers de recherche 06-11, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    8. Hidekazu Itoh, 2012. "Structural Changes In Port Cargo Flow Distribution In Asian Container Port Systems," Post-Print hal-00918674, HAL.
    9. Jacques Silber, 2020. "Foreword," METRON, Springer;Sapienza Università di Roma, vol. 78(2), pages 97-98, August.
    10. Panchanan Das & Anindita Sengupta, 2016. "Poverty and Food Security: Trends Among Socio-religious Groups in India," Indian Journal of Human Development, , vol. 10(3), pages 384-396, December.
    11. Beatriz Larraz, 2015. "Decomposing the Gini Inequality Index," Sociological Methods & Research, , vol. 44(3), pages 508-533, August.
    12. Giuseppe Pignataro & Michele Costa, 2023. "The Foster-Greer-Thorbecke index and the inequality factors: an analysis through the Gini index decomposition," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 21(2), pages 483-497, June.
    13. Jędrzejczak Alina, 2015. "Regional Income Inequalities In Poland And Italy / Rozkład Nierówności Według Regionów w Polsce i We Włoszech," Comparative Economic Research, Sciendo, vol. 18(4), pages 27-45, December.
    14. St鰨ane Mussard & Luc Savard, 2012. "The Gini multi-decomposition and the role of Gini's transvariation: application to partial trade liberalization in the Philippines," Applied Economics, Taylor & Francis Journals, vol. 44(10), pages 1235-1249, April.
    15. Paolo Radaelli, 2010. "On the Decomposition by Subgroups of the Gini Index and Zenga's Uniformity and Inequality Indexes," International Statistical Review, International Statistical Institute, vol. 78(1), pages 81-101, April.
    16. Paul Allanson, 2018. "On the Measurement of the Overall Degree of Income Stratification between Groups," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(2), pages 388-405, June.
    17. Alina Jędrzejczak, 2014. "Income Inequality and Income Stratification in Poland," Statistics in Transition new series, Główny Urząd Statystyczny (Polska), vol. 15(2), pages 269-282, March.
    18. Maria Giovanna MONTI, 2007. "A note on the Dagum decomposition of the Gini inequality index," Departmental Working Papers 2007-16, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    19. Dagum, Camilo, 2001. "Desigualdad del rédito y bienestar social, descomposición, distancia direccional y distancia métrica entre distribuciones," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 17, pages 5-52, Abril.
    20. Michele Costa, 2016. "Overlapping component and inequality decomposition: a simulation study for the Gini index," METRON, Springer;Sapienza Università di Roma, vol. 74(2), pages 193-205, August.
    21. Ellis Scharfenaker, Markus P.A. Schneider, 2019. "Labor Market Segmentation and the Distribution of Income: New Evidence from Internal Census Bureau Data," Working Paper Series, Department of Economics, University of Utah 2019_08, University of Utah, Department of Economics.

    More about this item

    Keywords

    Gini coefficient; inequality decomposition; Gini residual;
    All these keywords.

    JEL classification:

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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mil:wpdepa:2009-30. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: DEMM Working Papers (email available below). General contact details of provider: https://edirc.repec.org/data/damilit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.