Decomposition of Regional Income Inequality and Neighborhood Component: A Spatial Theil Index

Elena Lasarte Navamuel and Miguel Márquez

Working Papers. Serie EC from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie)

Abstract: In recent decades, spatial effects have been incorporated into mainstream economics. Nevertheless, although the addition of these spatial effects to the inequality indexes would be a natural extension in this line of research, to our knowledge, there are not contributions assessing neighborhood effects in measures of regional economic inequalities. This paper proposes a Spatial Theil index that provides a decomposition of the Theil index that allows us to assess which part of regional inequalities is due to neighborhood features. The proposal is illustrated for the case of the Spanish peninsular provinces during the period 1980-2008. En las últimas décadas, los efectos espaciales se han incorporado a las principales líneas de investigación en economía. Sin embargo, a pesar de que la incorporación de dichos efectos espaciales en los índices de desigualdad sería una extensión natural de esta línea de investigación, hasta donde sabemos, no existen contribuciones que evalúen los efectos de vecindad dentro de las medidas de las desigualdades económicas regionales. En este trabajo se propone un índice de Theil espacial que proporciona una descomposición del índice de Theil que nos permite evaluar qué parte de las desigualdades regionales se debe a las características de los vecinos. La propuesta se ilustra para el caso de las provincias peninsulares españolas durante el período 1980-2008.

Keywords: Descomposición de la desigualdad; desigualdad interregional. Inequality decomposition; interregional inequality. (search for similar items in EconPapers)
JEL-codes: C10 C43 R1 R12 (search for similar items in EconPapers)
Pages: 1 pages
Date: 2014-02
New Economics Papers: this item is included in nep-geo
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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