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What are we assuming when using inequality measures to quantify geographic concentration? An axiomatic approach

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  • Olga Alonso-Villar

Abstract

This paper formally shows the parallel that exists between inequality and spatial concentration measurement. This examination allows us to unveil the properties that the literature is implicitly assuming when using inequality measures to quantify the spatial concentration of economic activity. Thus, the properties satisfied by the Gini index and the generalized entropy family when using them to analyze location patterns are shown. In addition, another inequality-based concentration measure is proposed. Finally, the basic properties of the concentration measurement when using “employment Lorenz curves” are unveiled, and additive decompositions of these curves are proposed.

Suggested Citation

  • Olga Alonso-Villar, 2008. "What are we assuming when using inequality measures to quantify geographic concentration? An axiomatic approach," Working Papers 0801, Universidade de Vigo, Departamento de Economía Aplicada.
    • Handle: RePEc:vig:wpaper:0801
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    More about this item

    Keywords

    Inequality measures; Segregation; Geographic concentration; Axioms;
    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)
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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