Linking Yitzhaki’s and Dagum’s Gini Decompositions

Stéphane Mussard and Patrick Richard

Cahiers de recherche from Departement d'économique de l'École de gestion à l'Université de Sherbrooke

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 the impact of marginal tax reforms on within- and between-group, respectively.

Keywords: Extended Gini; Multidimensional Decomposition; Tax reforms (search for similar items in EconPapers)
JEL-codes: D31 D63 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-0821.pdf First version, 2008 (application/pdf)

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:shr:wpaper:08-21

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