BONFERRONI AND DE VERGOTTINI ARE BACK: NEW SUBGROUP DECOMPOSITIONS AND BIPOLARIZATION MEASURES

Mariateresa Ciommi, Chiara Gigliarano and Giovanni Giorgi

No 439, Working Papers from Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali

Abstract: Aim of this paper is to propose new bipolarization indices based on he Bonferroni and De Vergottini indices of inequality.The new bipolarization indices follow the approach of Foster and Wolfson and are based on new subgroup decomposition of Bonferroni and De Vergottini indices of inequality. We also provide the conditions under which the new polarization indices satisfy the Increased Spread and Increased Bipolarity axioms. Finally, a simulation study has been carried out to compare the different sensitivity of the new bipolarization indices to progressive transfers. Also, an empirical application based on EU-SILC data for Italy ober the period 2007-2011 show the appeal of our proposal.

Keywords: Bonferroni index; De Vergottini index; Gini index; In-equality; Subgroup decomposition; Polarization measurement. (search for similar items in EconPapers)
JEL-codes: C43 D31 D63 I32 (search for similar items in EconPapers)
Pages: 59
Date: 2019-10
New Economics Papers: this item is included in nep-eur
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Persistent link: https://EconPapers.repec.org/RePEc:anc:wpaper:439

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