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Inequality factor decompotition under uniform additions property with applications to Cameroonian rural data


  • Chameni Nembua, Célestin


This paper proposes new factors decomposition methods for classical inequality indices such as Gini index, variance and squared coefficient of variations index. The approach consists in relaxing the normalization property in order to extend the natural decomposition to a decomposition rule which satisfies the uniform additions property. The regression-based method using the new formulations of components contributions is carried out. Empirical examples, using Cameroonian data, are provided to demonstrate the use of the procedure and to contrast our results to those based on Morduch and Sicular (2002) principle, especially in the case of the Gini index.

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  • Chameni Nembua, Célestin, 2009. "Inequality factor decompotition under uniform additions property with applications to Cameroonian rural data," MPRA Paper 31250, University Library of Munich, Germany, revised 2009.
  • Handle: RePEc:pra:mprapa:31250

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    References listed on IDEAS

    1. Wan, Guanghua, 2002. "Regression-based Inequality Decomposition: Pitfalls and a Solution Procedure," WIDER Working Paper Series 101, World Institute for Development Economic Research (UNU-WIDER).
    2. Jonathan Morduch & Terry Sicular, 2002. "Rethinking Inequality Decomposition, With Evidence from Rural China," Economic Journal, Royal Economic Society, vol. 112(476), pages 93-106, January.
    3. Cowell, Frank & Fiorio, Carlo V., 2006. "Rethinking inequality decomposition: comment," LSE Research Online Documents on Economics 3782, London School of Economics and Political Science, LSE Library.
    4. Lerman, Robert I & Yitzhaki, Shlomo, 1985. "Income Inequality Effects by Income," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 151-156, February.
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    More about this item


    Inequality factors decomposition; uniform additions property; regression-based. decomposition; Cameroon.;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration


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