A note on the decomposability of inequality measures

Frederic Chantreuil (), Sebastien Courtin (), Kévin Fourrey and Isabelle Lebon
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Frederic Chantreuil: CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique
Sebastien Courtin: CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique

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Abstract: We propose a decomposition of inequality measures. By taking the example of the decomposition of income inequality by components, we show that this decomposition fits the definition of two elements: the sum of pure marginal contributions of income components and the sum of the pairwise interactions of all income components. This decomposition relies on the Shapley function and remains valid for a decomposition by subgroups and by components.

Keywords: Interactions; Inequality decomposition; Shapley JEL Codes: C71; D63 (search for similar items in EconPapers)
Date: 2019-08
New Economics Papers: this item is included in nep-gth and nep-ore
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-02294331
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Citations: View citations in EconPapers (8)

Published in Social Choice and Welfare, 2019, 53 (2), pp.283-298. ⟨10.1007/s00355-019-01183-9⟩

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Journal Article: A note on the decomposability of inequality measures (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-02294331

DOI: 10.1007/s00355-019-01183-9

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