A Gini and concentration index decomposition with an application to the APK reranking measure

Achille Vernizzi, Maria Giovanna Monti () and Mauro Mussini ()

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

Abstract: In this paper, we suggest an alternative way to calculate the concentration index and a new matrix form approach, which can be applied both to the Gini and to the concentration index. For both indices, this approach yields expressions that are decomposable by groups and easily comparable. Our findings are illustrated by applying them to the Atkinson Plotnick Kakwani (APK) reranking measure. It is known that when a population is not homogeneous, the reranking measure can be decomposed following the suggestions of the conventional Gini index decomposition. We show that the reranking between groups and the reranking related with the overlapping term cannot be considered as measures of the tax system unfairness.

Keywords: Inequality measure decomposition; reranking; reranking effect decomposition (search for similar items in EconPapers)
JEL-codes: D63 H23 (search for similar items in EconPapers)
Date: 2010-04-24, Revised 2010-12-13
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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