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Inequality foundations of concentration measures: An application to the Hannah-Kay indices

Oscar Bajo-Rubio () and Rafael Salas ()

Spanish Economic Review, 2002, vol. 4, issue 4, 311-316

Abstract: The aim of this paper is to provide a connection between concentration and inequality. In particular, we show that the general entropy inequality indices are, among inequality measures, those consistent with the whole set of Hannah-Kay concentration indices. We isolate the inequality component underlying concentration measures, obtaining an explicit additive decomposition of the change in concentration into the change in its two components, i.e., inequality and the number of firms. This relationship proves to be valid for the whole set of Hannah-Kay concentration indices, and embodies as particular cases some others previously found in the literature.

Keywords: Concentration; inequality (search for similar items in EconPapers)
JEL-codes: D63 L11 (search for similar items in EconPapers)
Date: 2002-11-29
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Working Paper: Inequality foundations of concentration measures: an application to the hannah-kay indices (1999) Downloads
Working Paper: Inequality Foundations of Concentration Measures: An Application to the Hannah-Kay Indices (1999) Downloads
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