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On a class of bi-polarization variance-based measurement: Evidence from Cameroonian data

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  • Chameni Nembua, Célestin

Abstract

This paper revisits one of the bipolarization indices of the large class of Duclos-Estebane-Ray polarization measures. The relationship between polarization, inequality and poverty is analyzed via the index. First, polarization measure for the median is defined and related to the subtraction of the between group and the within-groups components of the coefficient of variation squared. Second, the generalized bipolarization measure is defined and related to poverty via the headcount ratio, the income gap ratio and the overabundance gap ratio. In particular, it is shown that polarization is high when the headcount ratio is around 0.5 and polarization is little when the headcount ratio is far from this value. Third, the preceding results are applied to analyze the Cameroonian household’s consumption distribution.

Suggested Citation

  • Chameni Nembua, Célestin, 2010. "On a class of bi-polarization variance-based measurement: Evidence from Cameroonian data," MPRA Paper 25411, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:25411
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    References listed on IDEAS

    as
    1. 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.
    2. Michael C. Wolfson, 1997. "Divergent Inequalities: Theory And Empirical Results," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 43(4), pages 401-421, December.
    3. Jean-Yves Duclos & Joan Esteban & Debraj Ray, 2004. "Polarization: Concepts, Measurement, Estimation," Econometrica, Econometric Society, vol. 72(6), pages 1737-1772, November.
    4. Esteban, Joan & Ray, Debraj, 1994. "On the Measurement of Polarization," Econometrica, Econometric Society, vol. 62(4), pages 819-851, July.
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    6. C. Chameni Nembua, 2007. "The multi-decomposition of the Hirschman-Herfindahl index: measuring household inequality in Cameroon, 1996-2001," Applied Economics Letters, Taylor & Francis Journals, vol. 14(1), pages 27-34.
    7. repec:bla:revinw:v:43:y:1997:i:4:p:401-21 is not listed on IDEAS
    8. X. Zhang & R. Kanbur, 2001. "What Difference Do Polarisation Measures Make? An Application to China," Journal of Development Studies, Taylor & Francis Journals, vol. 37(3), pages 85-98.
    9. Wolfson, Michael C, 1994. "When Inequalities Diverge," American Economic Review, American Economic Association, vol. 84(2), pages 353-358, May.
    10. Juan G. Rodríguez & Rafael Salas, "undated". "Extended Bi-Polarization And Inequality Measures," Working Papers 10-03 Classification-JEL , Instituto de Estudios Fiscales.
    11. You‐Qiang Wang & Kai‐Yuen Tsui, 2000. "Polarization Orderings and New Classes of Polarization Indices," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 2(3), pages 349-363, July.
    12. Juan Gabriel Rodríguez, 2004. "Measuring polarization, inequality, welfare and poverty," Economic Working Papers at Centro de Estudios Andaluces E2004/75, Centro de Estudios Andaluces.
    13. Dagum, Camilo, 1997. "A New Approach to the Decomposition of the Gini Income Inequality Ratio," Empirical Economics, Springer, vol. 22(4), pages 515-531.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Polarization; inequality; poverty; Cameroon;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General

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