IDEAS home Printed from https://ideas.repec.org/p/uab/wprdea/wpdea0302.html
   My bibliography  Save this paper

Factor decomposition of spatial income inequality: a revision

Author

Listed:
  • Juan Antonio Duro

    (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona)

Abstract

Duro and Esteban (1998) proposed an additive decomposition of Theil populationweighted index by four income multiplicative factors (in spatial contexts). This note makes some additional methodological points: first, it argues that interaction effects are taken into account in the factoral indexes although only in a fairly restrictive way. As a consequence, we suggest to rewrite the decomposition formula as a sum of strict Theil indexes plus the interactive terms; second, it might be instructive to aggregate some of the initial factors; third, this decomposition can be immediately extended to the between- and within-group components.

Suggested Citation

  • Juan Antonio Duro, 2003. "Factor decomposition of spatial income inequality: a revision," Working Papers wpdea0302, Department of Applied Economics at Universitat Autonoma of Barcelona.
    • Handle: RePEc:uab:wprdea:wpdea0302
    as

    Download full text from publisher

    File URL: https://ecap.uab.cat/RePEc/doc/wpdea0302.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-625, April.
    2. Theil, Henri & Sorooshian, Cyrus, 1979. "Components of the change in regional inequality," Economics Letters, Elsevier, vol. 4(2), pages 191-193.
    3. Ram Rati, 1992. "International inequalities in human development and real income," Economics Letters, Elsevier, vol. 38(3), pages 351-354, March.
    4. Theil, Henri, 1979. "The measurement of inequality by components of income," Economics Letters, Elsevier, vol. 2(2), pages 197-199.
    5. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-920, July.
    6. Goerlich Gisbert, Francisco J., 2001. "On factor decomposition of cross-country income inequality: some extensions and qualifications," Economics Letters, Elsevier, vol. 70(3), pages 303-309, March.
    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. Friso Schlitte & Tiiu Paas, 2008. "Regional Income Inequality and Convergence Processes in the EU-25," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2008(Suppl. 2), pages 29-49.
    2. Juan Antonio Duro Moreno & Emilio Padilla Rosa, "undated". "Análisis De Los Factores Determinantes De Las Desigualdades Internacionales En Las Emisiones De Co2 Per Cápita Aplicando El Enfoque Distributivo: Una Metodología De Descomposición Por Factores De Kaya," Working Papers 25-05 Classification-JEL , Instituto de Estudios Fiscales.
    3. Padilla, Emilio & Duro, Juan Antonio, 2013. "Explanatory factors of CO2 per capita emission inequality in the European Union," Energy Policy, Elsevier, vol. 62(C), pages 1320-1328.
    4. Duro, Juan Antonio & Padilla, Emilio, 2011. "Inequality across countries in energy intensities: An analysis of the role of energy transformation and final energy consumption," Energy Economics, Elsevier, vol. 33(3), pages 474-479, May.
    5. Remuzgo, Lorena & Sarabia, José María, 2013. "Desigualdad en la distribución mundial de emisiones de CO2 por sectores: Descomposición y estudio de sensibilidad/Inequality of Global Distribution of CO2 Emissions by Sector: Decomposition and Sensit," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 31, pages 65-92, Enero.
    6. Duro, Juan Antonio & Padilla, Emilio, 2006. "International inequalities in per capita CO2 emissions: A decomposition methodology by Kaya factors," Energy Economics, Elsevier, vol. 28(2), pages 170-187, March.

    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. Teixidó Figueras, Jordi & Duro Moreno, Juan Antonio, 2012. "Ecological Footprint Inequality: A methodological review and some results," Working Papers 2072/203168, Universitat Rovira i Virgili, Department of Economics.
    2. Lorena Remuzgo & Jose Maria Sarabia, 2015. "A general factorial decomposition of the second Theil index of inequality with applications in environmental economics," Economics Bulletin, AccessEcon, vol. 35(2), pages 1369-1378.
    3. Jon Olaskoaga-Larrauri & Ricardo Alaez-Aller & Eneko Arrospide-Zabala, 2011. "Determinant factors in the convergence of welfare effort in OECD countries: a decomposition of the Theil indices," Applied Economics Letters, Taylor & Francis Journals, vol. 18(13), pages 1263-1266.
    4. Thomas Knaus & Miriam Beblo, 2000. "Measuring Income Inequality in Euroland," LIS Working papers 232, LIS Cross-National Data Center in Luxembourg.
    5. BEBLO Miriam & KNAUS Thomas, 2000. "Measuring Income Inequality in Euroland," IRISS Working Paper Series 2000-10, IRISS at CEPS/INSTEAD.
    6. Francisco J. Goerlich-Gisbert & Casilda Lasso de la Vega & Ana Marta Urrutia, 2009. "The ‘extended’ Atkinson family and changes in the expenditure distribution. Spain 1973/74-2003," Journal of Income Distribution, Ad libros publications inc., vol. 18(1), pages 20-41, March.
    7. Tomson Ogwang, 2000. "Inter-country inequality in human development indicators," Applied Economics Letters, Taylor & Francis Journals, vol. 7(7), pages 443-446.
    8. Frank Cowell & Carlo Fiorio, 2011. "Inequality decompositions—a reconciliation," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(4), pages 509-528, December.
    9. Stefan Groot & Henri de Groot, 2011. "Wage inequality in the Netherlands: Evidence, trends and explanations," CPB Discussion Paper 186, CPB Netherlands Bureau for Economic Policy Analysis.
    10. Saurabh Mishra & Bilal M. Ayyub, 2019. "Shannon Entropy for Quantifying Uncertainty and Risk in Economic Disparity," Risk Analysis, John Wiley & Sons, vol. 39(10), pages 2160-2181, October.
    11. Duro, Juan Antonio, 2013. "Weighting vectors and international inequality changes in environmental indicators: An analysis of CO2 per capita emissions and Kaya factors," Energy Economics, Elsevier, vol. 39(C), pages 122-127.
    12. Frank Cowell, 2005. "Theil, Inequality Indices and Decomposition," Working Papers 01, ECINEQ, Society for the Study of Economic Inequality.
    13. Frank Cowell & Carlo V. Fiorio, 2010. "GINI DP 4: Inequality Decompositions," GINI Discussion Papers 4, AIAS, Amsterdam Institute for Advanced Labour Studies.
    14. Jordi Teixidó-Figueras & Juan Duro, 2015. "International Ecological Footprint Inequality: A Methodological Review and Some Results," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 60(4), pages 607-631, April.
    15. Neves Costa, Rita & Pérez-Duarte, Sébastien, 2019. "Not all inequality measures were created equal - The measurement of wealth inequality, its decompositions, and an application to European household wealth," Statistics Paper Series 31, European Central Bank.
    16. Chakravarty, Satya R. & Deutsch, Joseph & Silber, Jacques, 2008. "On the Watts Multidimensional Poverty Index and its Decomposition," World Development, Elsevier, vol. 36(6), pages 1067-1077, June.
    17. Juan Luis Londoño & Miguel Székely, 2000. "Persistent Poverty and Excess Inequality: Latin America, 1970-1995," Journal of Applied Economics, Universidad del CEMA, vol. 3, pages 93-134, May.
    18. Casilda Lasso de la Vega & Ana Urrutia & Oscar Volij, 2011. "An Axiomatic Characterization Of The Theil Inequality Order," Working Papers 1103, Ben-Gurion University of the Negev, Department of Economics.
    19. Tugce, Cuhadaroglu, 2013. "My Group Beats Your Group: Evaluating Non-Income Inequalities," SIRE Discussion Papers 2013-49, Scottish Institute for Research in Economics (SIRE).
    20. Teixidó-Figueras, J. & Duro, J.A., 2014. "Spatial Polarization of the Ecological Footprint Distribution," Ecological Economics, Elsevier, vol. 104(C), pages 93-106.

    More about this item

    Keywords

    Theil index; inequality decomposition.;

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • F00 - International Economics - - General - - - General

    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:uab:wprdea:wpdea0302. 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: Dept. Economia Aplicada (email available below). General contact details of provider: https://edirc.repec.org/data/dauabes.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.