Subgroup and Shapely Value Decompositions of Multidimensional Inequality: An Application to South East European Countries

Sebastian Leitner and Robert Stehrer

No 96, wiiw Balkan Observatory Working Papers from The Vienna Institute for International Economic Studies, wiiw

Abstract: Inequality is a multidimensional phenomenon though it is often discussed along a single dimension like income. This is also the case for the various decomposition approaches of inequality indices. In this paper we study one- and multidimensional indices on inequality on data for three large South-East European countries, Bulgaria, Romania and Serbia. We include four dimensions in our measure of multidimensional inequality income, health, education and housing. We apply various decomposition methods to these one- and multidimensional indices. In doing so, we apply standard decomposition techniques of the mean logarithmic deviation index (I0) and decompositions based on regression analysis in conjunction with the Shapley value approach.

Keywords: Multidimensional inequality; Inequality decomposition; Shapley value (search for similar items in EconPapers)
JEL-codes: C20 D63 (search for similar items in EconPapers)
Date: 2011-03
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Published as wiiw Balkan Observatory Working Paper

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Working Paper: Subgroup and Shapley Value Decompositions of Multidimensional Inequality – An Application to Southeast European Countries (2011)
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