A general factorial decomposition of the second Theil index of inequality with applications in environmental economics

Lorena Remuzgo () and José María Sarabia ()
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Lorena Remuzgo: University of Cantabria

Economics Bulletin, 2015, vol. 35, issue 2, 1369-1378

Abstract: In this paper, we propose a general factorial decomposition of the second Theil index of inequality at macroeconomic level. The factorial decomposition of the second Theil index of inequality in k multiplicative factors is shown. Such decomposition is detailed, on the one hand, considering the partial contribution of each factor and, on the other hand, taking into account the interactions between factors as a whole. The previous decomposition is extended to analyze the between- and within-group inequality components. Finally, the study of the determinants of global inequality in per-capita CO2 emissions is provided as an example of application.

Keywords: Theil index; Inequality Decomposition; CO2 Distribution. (search for similar items in EconPapers)
JEL-codes: C0 C1 (search for similar items in EconPapers)
Date: 2015-06-08
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Citations: View citations in EconPapers (2)

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