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The 'natural' bidimensional decomposition of inequality indices: evaluating factor contributions to households welfare inequality in Cameroon, 1996-2001

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  • C. Chameni Nembua

Abstract

This article proposes a simultaneous (income source and population subgroup) decomposition of inequality indices. The starting point is the Shorrocks' natural income source decomposition. The approach adopted leads to a factor contributions formula, which is independent of the inequality measure chosen. This method is applied to decompose and analyse Cameroonian households' inequality during the 1996-2001 period.

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  • C. Chameni Nembua, 2008. "The 'natural' bidimensional decomposition of inequality indices: evaluating factor contributions to households welfare inequality in Cameroon, 1996-2001," Applied Economics Letters, Taylor & Francis Journals, vol. 15(12), pages 963-970.
    • Handle: RePEc:taf:apeclt:v:15:y:2008:i:12:p:963-970
    DOI: 10.1080/13504850600972311
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    References listed on IDEAS

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    1. Frank A. Cowell, 1980. "On the Structure of Additive Inequality Measures," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(3), pages 521-531.
    2. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, vol. 52(6), pages 1369-1385, November.
    3. Shorrocks, A F, 1982. "Inequality Decomposition by Factor Components," Econometrica, Econometric Society, vol. 50(1), pages 193-211, January.
    4. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-920, July.
    5. John C. H. Fei & Gustav Ranis & Shirley W. Y. Kuo, 1978. "Growth and the Family Distribution of Income by Factor Components," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 92(1), pages 17-53.
    6. Stephane Mussard, 2004. "The bidimensional decomposition of the Gini ratio. A case study: Italy," Applied Economics Letters, Taylor & Francis Journals, vol. 11(8), pages 503-505.
    7. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-625, April.
    8. Graham Pyatt & Chau-nan Chen & John Fei, 1980. "The Distribution of Income by Factor Components," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 95(3), pages 451-473.
    9. Dagum, Camilo, 1997. "A New Approach to the Decomposition of the Gini Income Inequality Ratio," Empirical Economics, Springer, vol. 22(4), pages 515-531.
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    1. Biloa Essimi, Jean Aristide & Chameni Nembua, Celestin, 2011. "L’Inégalité de Pauvreté Au Cameroun : Une Analyse Empirique à L’aide de la décomposition en sous-groupes de Dagum [Inequality of poverty in Cameroon: A Dagum sub-group decomposition analysis]," MPRA Paper 32966, University Library of Munich, Germany.

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