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A note on the decomposition of the coefficient of variation squared: comparing entropy and Dagum's methods

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  • Celestin Chameni Nembua

    (University of YaoundéII, Cameroon)

Abstract

The aim of this paper is to propose a new decomposition of the coefficient of variation squared. The approach is similar to the Dagum's method when decomposing the Gini index. We compare the new method to the former entropy decomposition of this coefficient. An empirical study is elaborated. This concerns a subgroup decomposition of the non food expenditure cameronian households inequality.

Suggested Citation

  • Celestin Chameni Nembua, 2006. "A note on the decomposition of the coefficient of variation squared: comparing entropy and Dagum's methods," Economics Bulletin, AccessEcon, vol. 4(8), pages 1-8.
    • Handle: RePEc:ebl:ecbull:eb-05d60003
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    References listed on IDEAS

    as
    1. Frank A. Cowell, 1980. "On the Structure of Additive Inequality Measures," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(3), pages 521-531.
    2. repec:ebl:ecbull:v:4:y:2003:i:7:p:1-6 is not listed on IDEAS
    3. Cowell, Frank A., 1980. "Generalized entropy and the measurement of distributional change," European Economic Review, Elsevier, vol. 13(1), pages 147-159, January.
    4. Dagum, Camilo, 1997. "A New Approach to the Decomposition of the Gini Income Inequality Ratio," Empirical Economics, Springer, vol. 22(4), pages 515-531.
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    Cited by:

    1. Mornet, Pauline & Zoli, Claudio & Mussard, Stéphane & Sadefo-Kamdem, Jules & Seyte, Françoise & Terraza, Michel, 2013. "The (α, β)-multi-level α-Gini decomposition with an illustration to income inequality in France in 2005," Economic Modelling, Elsevier, vol. 35(C), pages 944-963.
    2. C. Chameni Nembua, 2012. "On a class of bi-polarization variance-based measurement: evidence from Cameroonian data," Applied Economics Letters, Taylor & Francis Journals, vol. 19(13), pages 1311-1317, September.
    3. Stéphane Mussard & Michel Terraza, 2009. "Décompositions des mesures d'inégalité : le cas des coefficients de Gini et d'entropie," Recherches économiques de Louvain, De Boeck Université, vol. 75(2), pages 151-181.
    4. Boniface Ngah Epo & Francis Menjo Baye & Nadine Teme Angele Manga, 2011. "Spatial and Inter-temporal Sources of Poverty, Inequality and Gender Disparities in Cameroon: a Regression-Based Decomposition Analysis," Working Papers PMMA 2011-15, PEP-PMMA.

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    More about this item

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • D1 - Microeconomics - - Household Behavior

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