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The Gini decomposition: an alternative formulation with an application to tax reform

Maria Giovanna Monti () and Alessandro Santoro ()

Departmental Working Papers from Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano

Abstract: particularly of its 'residual' term R, that it is based on the concept of transvariation as introduced by the Italian statistical school. This expression yields a better understanding of the idea that R measures a between-group phenomenon that is generated by inequality within groups. In fact, it is shown here that in general a change in inequality within groups may alter R, but only when the overall intensity of transvariation is also changed. Second, we apply this expression to a tax reform aimed at decreasing between-group inequality.

Keywords: Gini coefficient; inequality decomposition; Gini residual (search for similar items in EconPapers)
JEL-codes: D63 (search for similar items in EconPapers)
Date: 2009-10-24
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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