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Interpretation of the coefficient of determination of an ANOVA model as a measure of polarization

Federico Palacios-González and Rosa Mar�a Garc�a-Fernández

Journal of Applied Statistics, 2012, vol. 39, issue 7, 1543-1555

Abstract: In this paper, it is demonstrated that coefficient of determination of an ANOVA linear model provides a measure of polarization. Taking as the starting point the link between polarization and dispersion, we reformulate the measure of polarization of Zhang and Kanbur using the decomposition of the variance instead of the decomposition of the Theil index. We show that the proposed measure is equivalent to the coefficient of determination of an ANOVA linear model that explains, for example, the income of the households as a function of any population characteristic such as education, gender, occupation, etc. This result provides an alternative way to analyse polarization by sub-populations characteristics and at the same time allows us to compare sub-populations via the estimated coefficients of the ANOVA model.

Date: 2012
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DOI: 10.1080/02664763.2012.658361

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