Inequality factor decompotition under uniform additions property with applications to Cameroonian rural data
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.
|Date of creation:||2009|
|Date of revision:||2009|
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- Frank A Cowell & Carlo V. Fiorio, 2006.
"Rethinking Inequality Decomposition:Comment,"
STICERD - Distributional Analysis Research Programme Papers
82, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Jonathan Morduch & Terry Sicular, 1998.
"Rethinking Inequality Decomposition, with Evidence from Rural China,"
Harvard Institute of Economic Research Working Papers
1831, Harvard - Institute of Economic Research.
- 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.
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- Wan, Guanghua, 2002. "Regression-based Inequality Decomposition: Pitfalls and a Solution Procedure," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
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