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Multidimensional Decomposition of the Sen Index: Some Further Thoughts

Author

Listed:
  • Stéphane Mussard

    (GREDI, Université de Sherbrooke and GEREM, Université de Perpignan)

  • Kuan Xu

    (Department of Economics, Dalhousie University, Halifax, Canada)

Abstract
Given the multiplicative decomposition of the Sen index into three commonly used poverty statistics – the poverty rate (poverty incidence), poverty gap ratio (poverty depth) and 1 plus the Gini index of poverty gap ratios of the poor (inequality of poverty) – the index becomes much easier to use and to interpret for economists, policy analysts and decision makers. Based on the recent findings on simultaneous subgroup and source decomposition of the Gini index, we examine possible further decompositions of the Sen index and its components for policy analysis.

Suggested Citation

  • Stéphane Mussard & Kuan Xu, 2006. "Multidimensional Decomposition of the Sen Index: Some Further Thoughts," Cahiers de recherche 06-08, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    • Handle: RePEc:shr:wpaper:06-08
    as

    Download full text from publisher

    File URL: http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-0608.pdf
    File Function: First version, 2006
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    References listed on IDEAS

    as
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    2. repec:bla:revinw:v:37:y:1991:i:3:p:313-29 is not listed on IDEAS
    3. F. Chantreuil & A. Trannoy, 1999. "Inequality decomposition values : the trade-off between marginality and consistency," THEMA Working Papers 99-24, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    4. Foster, James E & Shorrocks, Anthony F, 1991. "Subgroup Consistent Poverty Indices," Econometrica, Econometric Society, vol. 59(3), pages 687-709, May.
    5. Dagum, Camilo, 1997. "A New Approach to the Decomposition of the Gini Income Inequality Ratio," Empirical Economics, Springer, vol. 22(4), pages 515-531.
    6. Stephane Mussard, 2004. "The bidimensional decomposition of the Gini ratio. A case study: Italy," Applied Economics Letters, Taylor & Francis Journals, vol. 11(8), pages 503-505.
    7. Silber, Jacques, 1993. "Inequality Decomposition by Income," The Review of Economics and Statistics, MIT Press, vol. 75(3), pages 545-547, August.
    8. Lerman, Robert I & Yitzhaki, Shlomo, 1985. "Income Inequality Effects by Income," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 151-156, February.
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Mussard, Stéphane & Pi Alperin, Maria Noel, 2011. "Poverty growth in Scandinavian countries: A Sen multi-decomposition," Economic Modelling, Elsevier, vol. 28(6), pages 2842-2853.
    2. Mussini, Mauro, 2013. "On decomposing inequality and poverty changes over time: A multi-dimensional decomposition," Economic Modelling, Elsevier, vol. 33(C), pages 8-18.

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    More about this item

    Keywords

    Gini index; Sen index; Source decomposition; Subgroup decomposition;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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