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An alternative inequality-based concentration measure


  • Olga Alonso-Villar
  • Coral del Río


The aim of this paper is twofold. First, it shows the properties that regional economics is implicitly assuming when “relative” inequality measures, such as the Gini coefficient and the generalized entropy family of indexes, are used to quantify the geographic concentration of economic activity. Second, it proposes a new geographic concentration index that is based on an “absolute” inequality measure. This measure, which is additively decomposable, is also analyzed from an axiomatic point of view. Comparisons between these concentration indexes are illustrated by using manufacturing employment data in Spain.

Suggested Citation

  • Olga Alonso-Villar & Coral del Río, 2008. "An alternative inequality-based concentration measure," Working Papers 0804, Universidade de Vigo, Departamento de Economía Aplicada.
  • Handle: RePEc:vig:wpaper:0804

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    References listed on IDEAS

    1. Karl Aiginger & Michael Pfaffermayr, 2004. "The Single Market and Geographic Concentration in Europe," Review of International Economics, Wiley Blackwell, vol. 12(1), pages 1-11, February.
    2. Olga Alonso-Villar & Coral Del Río, 2008. "Geographical Concentration of Unemployment: A Male-Female Comparison in Spain," Regional Studies, Taylor & Francis Journals, vol. 42(3), pages 401-412, April.
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    More about this item


    Inequality measures; Segregation; Geographic concentration; Axioms;

    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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