Endogenous population subgroups: the best population partition and optimal number of groups

Ambra Poggi (ambra.poggi@uab.es)
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Ambra Poggi: Departament d'Economia Aplicada, Universitat Autonoma de Barcelona

Working Papers from Department of Applied Economics at Universitat Autonoma of Barcelona

Abstract: The aim of this paper is to suggest a method to find endogenously the points that group the individuals of a given distribution in k clusters, where k is endogenously determined. These points are the cut-points. Thus, we need to determine a partition of the N individuals into a number k of groups, in such way that individuals in the same group are as alike as possible, but as distinct as possible from individuals in other groups. This method can be applied to endogenously identify k groups in income distributions: possible applications can be poverty

Keywords: stopping rule; optimal grouping; Gini index (search for similar items in EconPapers)
JEL-codes: C10 D30 I32 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2005-05
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Citations: View citations in EconPapers (4)

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