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The Class of Additively Decomposable Inequality Measures
A. F. Shorrocks
Vol. 48, No. 3 (Apr., 1980), pp. 613-625
Published by: The Econometric Society
Stable URL: http://www.jstor.org/stable/1913126
Page Count: 13
You can always find the topics here!Topics: Income inequality, Coefficients, Population mean, Economic theory, Population size, Population distributions, Logical givens, Age groups, Entropy, Income distribution
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An additively decomposable inequality measure is one which can be expressed as aweighted sum of the inequality values calculated for population subgroups plus the contribution arising from differences between subgroup means. The paper derives the entire class of measures which are additively decomposable under relatively weak restrictions on the form of the index. The subclass of mean indepedent measures turns out to be a single parameter family which includes thesquare of the coefficient of variation and two entropy formulae proposed by Theil.
Econometrica © 1980 The Econometric Society