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A general class of additively decomposable inequality measures

TLDR
In this paper, a generalized form of additive decomposability is defined for within-group and between-group inequality terms using a generalized mean in place of the arithmetic mean, which is based on a minimal form of the transfer principle.
Abstract
This paper presents and characterizes a two-parameter class of inequality measures that contains the generalized entropy measures, the variance of logarithms, the path independent measures of Foster and Shneyerov (1999) and several new classes of measures. The key axiom is a generalized form of additive decomposability which defines the within-group and between-group inequality terms using a generalized mean in place of the arithmetic mean. Our characterization result is proved without invoking any regularity assumption (such as continuity) on the functional form of the inequality measure; instead, it relies on a minimal form of the transfer principle – or consistency with the Lorenz criterion – over two-person distributions.

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Journal ArticleDOI

Path Independent Inequality Measures

TL;DR: A natural decomposition property motivated by Shorrocks and Anand (1980, Econometrica 48, 613–625) is explored that is derived—a single parameter family containing both the second Theil measure (the mean logarithmic deviation) and the variance oflogarithms.
Posted Content

Measuring the Distribution of Human Development: Methodology and an Application to Mexico

TL;DR: The Human Development Index (HDI) as mentioned in this paper improves upon per capita GDP as an indicator of development by incorporating information on health and education, but it fails to account for the inequality with which the benefits of development are distributed among the population.

소득분배와 사회복지(Income Distribution)

TL;DR: In the early twenty-first century, income distribution became once again an important point of focus, both for policy and analysis as discussed by the authors, stimulated in part by concerns that globalisation was creating forces in many countries that were exacerbating greater inequalities of income distribution, which required positive corrective action.
Journal ArticleDOI

Measuring the Distribution of Human Development: methodology and an application to Mexico

TL;DR: The Human Development Index (HDI) as mentioned in this paper improves upon per-capita Gross Domestic Product as an indicator of development by incorporating information on health and education, but it fails to account for the inequality with which the benefits of development are distributed among the population.
Journal ArticleDOI

Inequality Decompositions. A Reconciliation

TL;DR: In this article, the authors show how classic source-decomposition and subgroup decomposition methods can be reconciled with regression methodology used in the recent literature, and highlight some pitfalls that arise from uncritical use of the regression approach.
References
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Journal ArticleDOI

On the Measurement of Inequality

TL;DR: In this paper, the problem of comparing two frequency distributions f(u) of an attribute y which for convenience I shall refer to as income is defined as a risk in the theory of decision-making under uncertainty.
Journal ArticleDOI

The class of additively decomposable inequality measures

Anthony F. Shorrocks
- 01 Apr 1980 - 
TL;DR: In this paper, the authors consider a wide class of inequality indices and identify those which are additively decomposable, including the squared coefficient of variation and the two Theil's entropy formulas.
Journal ArticleDOI

Decomposable income inequality measures

François Bourguignon
- 01 Jul 1979 - 
TL;DR: In this article, it was shown that Theil's coefficient (T) and the logarithm of the arithmetic mean over the geometric mean (L) are the only decomposable inequality measures such that the weight of the "within-components" in the total inequality of a partitioned population sum to a constant.
Journal ArticleDOI

Inequality decomposition by population subgroups

Anthony F. Shorrocks
- 01 Nov 1984 - 
TL;DR: In this paper, the implications of imposing a weak aggregation condition on inequality indices, so that the overall inequality value can be computed from information concerning the size, mean, and inequality value of each population subgroup, are examined.