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Decomposition of Bivariate Inequality Indices by Attributes Revisited

  • Martyna Kobus

    ()

    (Faculty of Economic Sciences, University of Warsaw)

Decomposability of multidimensional inequality indices by attributes is considered a highly desired property. Naga and Geoffard (2006) provided for it in case of three bivariate indices. To this end, they introduced the notion of a copula function into inequality measurement theory which, as a measure of association, is a natural concept for the study of decomposability. We show that the decomposition obtained is unrelated to copulas, and prove that two indices do not admit decomposition if association is indeed measured via copula. Most notably, the proof reveals a necessary property of indices decomposable via copulas which is similar to well-known separability property.

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File URL: http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP30.pdf
File Function: First version, 2010
Download Restriction: no

Paper provided by Faculty of Economic Sciences, University of Warsaw in its series Working Papers with number 2010-07.

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Length: 10 pages
Date of creation: 2010
Date of revision:
Handle: RePEc:war:wpaper:2010-07
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  1. Ramses H. Abul Naga & Pierre-Yves Geoffard, 2006. "Decomposition of bivariate inequality indices by attributes," LSE Research Online Documents on Economics 6541, London School of Economics and Political Science, LSE Library.
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