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Space-time patterns of rank concordance: Local indicators of mobility association with application to spatial income inequality dynamics

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  • Rey, Sergio

Abstract

In the study of income inequality dynamics, the concept of exchange mobility plays a central role. Applications of classical rank correlation statistics have been used to assess the degree to which individual economies swap positions in the income distribution over time. These classic measures ignore the underlying geographical pattern of these rank changes. Rey (2004) introduced a spatial concordance statistic as an extension of Kendall’s rank correlation statistic, a commonly employed measure of exchange mobility. This article suggests local forms of the global spatial concordance statistic: Local Indicators of Mobility Association (LIMA). The LIMA statistics allow for the decomposition of the global measure into the contributions associated with individual locations. They do so by considering the degree of concordance (stability) or discordance (exchange mobility) reflected within an economy’s local spatial context. Different forms of the LIMAs derive from alternative expressions of the neighborhood and neighbor set. Additionally, the additive decomposition of the LIMAs permits the development of a meso-level analytic to examine whether the overall space-time concordance is driven by either interregional or intraregional concordance. The measures are illustrated in a case study that examines regional income dynamics in Mexico.

Suggested Citation

  • Rey, Sergio, 2016. "Space-time patterns of rank concordance: Local indicators of mobility association with application to spatial income inequality dynamics," MPRA Paper 69480, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:69480
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    References listed on IDEAS

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    More about this item

    Keywords

    space-time; concordance; inequality;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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