Linking Yitzhaki’s and Dagum’s Gini Decompositions

Stéphane Mussard and Patrick Richard

Working Papers from LAMETA, Universtiy of Montpellier

Abstract: In this article we show that the Gini coefficient is simultaneously decomposable both by sources of income and by populations of income receivers for non-overlapping income distributions: the so-called first-best Gini multi-decomposition. We show that this multidimensional decomposition is useful for many reasons: (i) it is related to the degree of inequality aversion of the decision maker, (ii) it is especially well suited to study inequalities between poor and non-poor people, (iii) it enables one to measure within- and between-group Gini elasticities, which gauge the impact of global transfers on within- and between-group inequalities, respectively.

Pages: 18 pages
Date: 2008-07, Revised 2008-07
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Linking Yitzhaki's and Dagum's Gini decompositions (2012)
Working Paper: Linking Yitzhaki’s and Dagum’s Gini Decompositions (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:lam:wpaper:08-13

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