The lorentz curve is a graphical representation of this inequality which is intimately related to the gini coefficient. Industrial co 2 emissions efficiency and its determinants. In this paper we show that two decompositions presented separately in the literature, a traditional decomposition and a decomposition suggested by dagum 1997, are identical, a fact not previously acknowledged in the. This anomaly is absent from dagum s decomposition of the gini ratio, as has been mathematically substantiated and is corroborated by the estimates in row 10. Dagums and yitzhakis contributions to the gini decompositions are of great interest since they have contributed to remove many doubts about the decomposability of the gini index or the extended gini index in other cases in its various con. Finally, the decomposition of g into the contributions within g w, between g b, and the transvariation g t accounts for factual evidences of observed income distributions. The main purpose of this research is to deduce and analyse a new decomposition of the gini index, and to present and analyse a decomposition of the generalized entropy inequality measure, deducing from the latter the particular cases corresponding to theil, hirschmanherfindahl, and bourguignon indexes.
Pdf transvariation and inequality between subpopulations in the. Gini and the degree of overlapping between two distributions. I bought the first one because of the design and because of the sustainability aspect, and bought two more because the size is just great for writing and they are pretty in a simplistic way. This command decomposes the gini coefficient by income source using the approach described in lerman and yitzhaki 1985 and in stark, taylor and yitzhaki 1986. On the decomposition of the gini index let us go back to one of the definitions of the gini index that we gave previously, the one where the gini index is defined as i n i i g n i n s 1 2 1 1 where n is the total number of individuals and is refers to the share of individual i in total income that is, s i x i nx where x i. Commission of china, in line with this book, gu and gr from 1978 to 2010 were. The first one deals with a poornonpoor decomposition within a subgroup multilevel framework. To measure the contributions to inequality from population subgroups, the gini coefficient is often decomposed into inequality within groups, inequality between groups and a residual term arising from the overlapping of income distributions from different groups.
Bv 1990 ordinal decomposition of inequality measures in case of dagum distributions. Pdf extensions of dagums gini decomposition researchgate. A note on the dagum decomposition of the gini inequality index. A new decomposition method, dagums approach for decomposition of the gini coefficient is used in the study. New approach to the decomposition of the gini income inequality ratio, empirical. The purpose of this research is to introduce a new approach to the decomposition of the gini ratio into three components, supporting them with economic and statistical rigorous interpretations. The decomposition of the gini coefficient by between and within group inequality. It is worth mentioning that lerman and yitzhakis 1985 gini decomposition could be combined to dagums gini decomposition in order to derive an. The gini coefficient is widely used to measure inequality in the distribution of income, wealth, expenditures, etc. The purpose of this paper is to extend dagum s gini decomposition a new approach to the decomposition of the gini income inequality ratio, empirical economics 224, 515531, 1997a following three types of theoretical modelisation.
In this article we provide an overview of the gini decomposition and the. In most cases there is an overlap of the distribution of both groups. The mean of that distribution is defined as using lebesguestiltjes integrals. In the analysis, the decomposition of the gini coefficient by gender is applied to turkish individuals twice. This technique is apprehended within a multidimensional framework and then. Collegeruled composition notebook with 100% postconsumerwaste recycled pages michael rogers, inc. Gini, the global innovation institute, is the worlds leading professional certification, accreditation, and membership association in the field of innovation. Three books on income distributions and inequality indices are of great value.
Lets consider a distribution f defined by its cumulative distribution function fy. It is worth mentioning that lerman and yitzhakis 1985 gini decomposition could be combined to dagum s gini decomposition in order to derive an appropriate gini multi decomposition. Gini koch born jeanne marie gerrard on january 25, in california, is a science fiction, fantasy, and horror writer based in phoenix, arizona. The purpose of this paper is to extend dagums gini decomposition a. In this paper we reconsider the dagum decomposition of the gini index and we compare this decomposition with the decompositions proposed by mookherjee and shorrocks and by lambert and aronson. Decomposition and interpretation of gini and the generalized.
Today i will show the use of a user written command descogini to decompose the gini by income source. An open book decomposition of a 3dimensional manifold m is a pair b. Dagums gini decomposition by subpopulation 1997a, 1997b. Income inequality measures dagum major reference works. A new approach to the decomposition of the gini income. Pdf the purpose of this paper is to extend dagums gini decomposition a new approach to the decomposition of the gini income inequality ratio. I will probably get a lot more in the future my favourite notebook so far.
In this article we provide an overview of the gini decomposition and the generalized entropy inequality measures, a free access to their computation, an application on french wages, and a different way than dagum to demonstrate that the gini index is a more convenient measure. Gini coefficient and the lorentz curve file exchange. She is best known for the alien series informally known as the katherine kitty katt series novels, published in the united states by daw books. Pdf linking yitzhakis and dagums gini decompositions. New approach to the decomposition of the gini income inequality ratio. Articles on econometric methodology with special reference to the quantification of poverty and economic inequality are presented in this book. M \ b s 1 is a fibration of the complement of b such that for each. The simplified dagums gini index decomposition is applied to the italian household income distribution disaggregated by the educational level and. Dagum, 1997 and that we view the gini elasticity derived from raos 1969 decomposition. This adofile provides the gini coefficient for the whole population, for each subgroup specified in groupvar, and its pyatts 1976 decomposition in between, overlap and withingroup inequality. Dagum c 1996 a systemic approach to the generation of income distribution models. A new approach to the decomposition of the gini income inequality. Jun 30, 2010 the gini coefficient is a measure of the inequality of a distribution often used for income or wealth distributions.
Decomposition of gini and the generalized entropy inequality. Decomposition of income inequality by income sources 1 1. However, formatting rules can vary widely between applications and fields of interest or study. A stepbystep procedure and numerical examples give operational content to the tool. We show that this multidimensional decomposition is useful for many reasons. Part of the studies in empirical economics book series studemp. A new approach to the decomposition of the gini income inequality ratio.
The population of families is disaggregated by types into the following subpopulations. In so doing, a deeper insight into the meaning of the overlapping term is given and an alternative expression for this term is obtained. The regional disequilibrium problem mainly arises from the gap between the eastern and western regions, and the interindustry gap is primarily manifested between heavily polluted and lightly polluted industries. Lorenz curve and gini coefficient are examples of new entities, their purpose being to. By decomposing this measure you can better understand the determinants of inequality. The concentration curve, its dual and the gini measure. Thus, the transvariation concept may be usefully employed here, as it emerges in the decomposition proposed by dagum 1997 that we rearrange as follows. Summary this tool illustrates how to decompose inequality measures by income sources. Gini decompositions and gini elasticities econstor. Consequence is that between and within group inequality doesnt add up to the total gini coefficient. Advances in econometrics, income distribution and scientific. In particular, it discusses this decomposition in the context of the gini and the theil indexes. Dagums and yitzhakis contributions to the gini decompositions are of great interest since they have contributed to remove many doubts about the decomposability of the gini index or the extended gini index in other cases in its various con gurations. Baum, a new stata command is available from the ssc archives.
Different methods of decomposing changes in poverty into growth. The second modelisation exposes a mixture of decompositions, the socalled gini multidecomposition, which merges the subgroup decomposition with the income source decomposition section 4. This citation of rousseau appears in an article in spanish where dagum 2001, in the memory of whom this book is published, also cites socrates who said that. Emanuele prize for social sciences see dagum, 1987a, p. The trend of the gini coefficient of china papers in the ssrn. Decomposition book notebooks 100% recycled paper milligram. Groupvar is a categorical variable not string who determines the subgroups in which the population will be divided. The role of the gini measure consists in describing the statistical dispersion and, therefore, one can consider it as a variability measure. In his 1912 book, corrado gini rst proposed a measure.
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