On the interpretation (and misinterpretation) of inequality decompositions by income sources

Ayal Kimhi

No 290007, Discussion Papers from Hebrew University of Jerusalem, Department of Agricultural Economics and Management

Abstract: This paper discusses interpretations of different inequality decomposition rules when inequality is decomposed by income sources. It argues that authors of a recent article based their conclusions on misinterpreted decomposition results. It also argues that marginal effects, derived as elasticities of inequality with respect to uniform increases in income from each source, are easily interpreted and can be compared across different decomposition rules.

Keywords: Agricultural and Food Policy; Financial Economics (search for similar items in EconPapers)
Pages: 19
Date: 2009-09
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Persistent link: https://EconPapers.repec.org/RePEc:ags:huaedp:290007

DOI: 10.22004/ag.econ.290007

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