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A general factorial decomposition of the second Theil index of inequality with applications in environmental economics

Author

Listed:
  • Lorena Remuzgo

    (University of Cantabria)

  • Jose Maria Sarabia

    (University of Cantabria)

Abstract

In this paper, we propose a general factorial decomposition of the second Theil index of inequality at macroeconomic level. The factorial decomposition of the second Theil index of inequality in k multiplicative factors is shown. Such decomposition is detailed, on the one hand, considering the partial contribution of each factor and, on the other hand, taking into account the interactions between factors as a whole. The previous decomposition is extended to analyze the between- and within-group inequality components. Finally, the study of the determinants of global inequality in per-capita CO2 emissions is provided as an example of application.

Suggested Citation

  • Lorena Remuzgo & Jose Maria Sarabia, 2015. "A general factorial decomposition of the second Theil index of inequality with applications in environmental economics," Economics Bulletin, AccessEcon, vol. 35(2), pages 1369-1378.
    • Handle: RePEc:ebl:ecbull:eb-15-00178
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    References listed on IDEAS

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    Cited by:

    1. Philipp Poppitz, 2019. "Multidimensional Inequality and Divergence: The Eurozone Crisis in Retrospect," Working Papers V-420-19, University of Oldenburg, Department of Economics, revised Feb 2019.
    2. Marina Malkina, 2017. "Social Well-Being of the Russian Federation Regions," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(1), pages 49-62.

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    More about this item

    Keywords

    Theil index; Inequality Decomposition; CO2 Distribution.;
    All these keywords.

    JEL classification:

    • C0 - Mathematical and Quantitative Methods - - General
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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