What are we assuming when using inequality measures to quantify geographic concentration? An axiomatic approach

Olga Alonso-Villar

No 801, Working Papers from Universidade de Vigo, Departamento de Economía Aplicada

Abstract: This paper formally shows the parallel that exists between inequality and spatial concentration measurement. This examination allows us to unveil the properties that the literature is implicitly assuming when using inequality measures to quantify the spatial concentration of economic activity. Thus, the properties satisfied by the Gini index and the generalized entropy family when using them to analyze location patterns are shown. In addition, another inequality-based concentration measure is proposed. Finally, the basic properties of the concentration measurement when using “employment Lorenz curves” are unveiled, and additive decompositions of these curves are proposed.

Keywords: Inequality measures; Segregation; Geographic concentration; Axioms (search for similar items in EconPapers)
JEL-codes: D63 R12 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2008-05
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Persistent link: https://EconPapers.repec.org/RePEc:vig:wpaper:0801

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