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Endogenous population subgroups: the best population partition and optimal number of groups

  • Ambra Poggi


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

The aim of this paper is to suggest a method to find endogenously the points that group the individuals of a given distribution in k clusters, where k is endogenously determined. These points are the cut-points. Thus, we need to determine a partition of the N individuals into a number k of groups, in such way that individuals in the same group are as alike as possible, but as distinct as possible from individuals in other groups. This method can be applied to endogenously identify k groups in income distributions: possible applications can be poverty

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Paper provided by Department of Applied Economics at Universitat Autonoma of Barcelona in its series Working Papers with number wpdea0508.

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Length: 15 pages
Date of creation: May 2005
Date of revision:
Handle: RePEc:uab:wprdea:wpdea0508
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