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Inequality, Decomposition of Inequality and Stationarity of State Domestic Product: An Empirical Evidence from Twenty Indian States

  • Pandey, Alok Kumar
  • Dixit, Annapurna

In this paper an attempt has been made to detect stationarity and inequality of the State Domestic Product among twenty states of Indian Federal System. For the purpose, time series and panel data has been utilized. Inequality in SDP and per capita SDP among states has been estimated with the help of Gini coefficient, generalized entropy indices and Atkinson indices. An attempt has been made to decompose inequality by using panel data. Indices of inequality are higher for SDP in comparison with per capita SDP. All the indices of within group inequality are higher than between group for SDP while it is vice ~ versa for per capita SDP. Percentile Ratios', Generalized Entropy Indices and Atkinson Indices reveal the presence of unit root at level and zero lag which shows the inequality among states are not stationary during the period under study.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 54237.

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Date of creation: 21 Feb 2011
Date of revision:
Publication status: Published in The Indian Journal Of Economics 367.XIIC(2012): pp. 571-645
Handle: RePEc:pra:mprapa:54237
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