By decomposing this measure you can better understand the determinants of inequality. New approach to the decomposition of the gini income inequality ratio. 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. Emanuele prize for social sciences see dagum, 1987a, p.
Summary this tool illustrates how to decompose inequality measures by income sources. The simplified dagums gini index decomposition is applied to the italian household income distribution disaggregated by the educational level and. Decomposition of income inequality by income sources 1 1. 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. Gini decompositions and gini elasticities econstor. Pdf linking yitzhakis and dagums gini decompositions. Thus, the transvariation concept may be usefully employed here, as it emerges in the decomposition proposed by dagum 1997 that we rearrange as follows. 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. 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.
In so doing, a deeper insight into the meaning of the overlapping term is given and an alternative expression for this term is obtained. An open book decomposition of a 3dimensional manifold m is a pair b. Jun 30, 2010 the gini coefficient is a measure of the inequality of a distribution often used for income or wealth distributions. 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, 1997 and that we view the gini elasticity derived from raos 1969 decomposition. 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.
Lorenz curve and gini coefficient are examples of new entities, their purpose being to. 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. 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. Articles on econometric methodology with special reference to the quantification of poverty and economic inequality are presented in this book. The purpose of this paper is to extend dagums gini decomposition a. Groupvar is a categorical variable not string who determines the subgroups in which the population will be divided. Three books on income distributions and inequality indices are of great value.
We show that this multidimensional decomposition is useful for many reasons. This technique is apprehended within a multidimensional framework and then. Gini coefficient and the lorentz curve file exchange. Decomposition book notebooks are made in the usa using 100% recycled paper, soy ink and biogas.
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. New approach to the decomposition of the gini income inequality ratio, empirical. However, formatting rules can vary widely between applications and fields of interest or study. The trend of the gini coefficient of china papers in the ssrn. Pdf the purpose of this paper is to extend dagums gini decomposition a new approach to the decomposition of the gini income inequality ratio. Pdf extensions of dagums gini decomposition researchgate. Section four provides an example of the gini decomposition by population subgroups using uk data and section ve concludes. 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. Bv 1990 ordinal decomposition of inequality measures in case of dagum distributions. Decomposition and interpretation of gini and the generalized.
The role of the gini measure consists in describing the statistical dispersion and, therefore, one can consider it as a variability measure. In the analysis, the decomposition of the gini coefficient by gender is applied to turkish individuals twice. Income inequality measures dagum major reference works. Consequence is that between and within group inequality doesnt add up to the total gini coefficient. Collegeruled composition notebook with 100% postconsumerwaste recycled pages michael rogers, inc.
A stepbystep procedure and numerical examples give operational content to the tool. Gini and the degree of overlapping between two distributions. Dagums gini decomposition by subpopulation 1997a, 1997b. A new approach to the decomposition of the gini income. The concentration curve, its dual and the gini measure. It is worth mentioning that lerman and yitzhakis 1985 gini decomposition could be combined to dagums gini decomposition in order to derive an. A new approach to the decomposition of the gini income inequality ratio. 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. The population of families is disaggregated by types into the following subpopulations. Part of the studies in empirical economics book series studemp. Industrial co 2 emissions efficiency and its determinants. 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. I will probably get a lot more in the future my favourite notebook so far.
Both the regional and industrial sectors dagum gini coefficients of industrial carbon efficiency exhibit the tendency of down first, and then up and stable on the whole. A new decomposition method, dagums approach for decomposition of the gini coefficient is used in the study. Gini koch born jeanne marie gerrard on january 25, in california, is a science fiction, fantasy, and horror writer based in phoenix, arizona. The decomposition introduced in this research is applied to the 1990 u. The gini coefficient is widely used to measure inequality in the distribution of income, wealth, expenditures, etc. 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. M \ b s 1 is a fibration of the complement of b such that for each. Decomposition of gini and the generalized entropy inequality.
Baum, a new stata command is available from the ssc archives. A note on the dagum decomposition of the gini inequality index. 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. Poverty and inequality measurement present special problems to the econometrician, and most of these papers analyze how to attack those problems. Commission of china, in line with this book, gu and gr from 1978 to 2010 were.
In most cases there is an overlap of the distribution of both groups. 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. 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. The mean of that distribution is defined as using lebesguestiltjes integrals. 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 lorentz curve is a graphical representation of this inequality which is intimately related to the gini coefficient. Gini, the global innovation institute, is the worlds leading professional certification, accreditation, and membership association in the field of innovation. Lets consider a distribution f defined by its cumulative distribution function fy. A new approach to the decomposition of the gini income inequality. Decomposition book notebooks 100% recycled paper milligram. In this article we provide an overview of the gini decomposition and the.
Advances in econometrics, income distribution and scientific. Pdf transvariation and inequality between subpopulations in the. Today i will show the use of a user written command descogini to decompose the gini by income source. Dagum c 1996 a systemic approach to the generation of income distribution models. In his 1912 book, corrado gini rst proposed a measure. 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. The decomposition of the gini coefficient by between and within group inequality. In particular, it discusses this decomposition in the context of the gini and the theil indexes. The first one deals with a poornonpoor decomposition within a subgroup multilevel framework. 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. This section is devoted to the decomposition of the gini measure.
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