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Subgroup and Shapely Value Decompositions of Multidimensional Inequality: An Application to South East European Countries

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  • Sebastian Leitner

    (The Vienna Institute for International Economic Studies, wiiw)

  • Robert Stehrer

    (The Vienna Institute for International Economic Studies, wiiw)

Abstract

Inequality is a multidimensional phenomenon though it is often discussed along a single dimension like income. This is also the case for the various decomposition approaches of inequality indices. In this paper we study one- and multidimensional indices on inequality on data for three large South-East European countries, Bulgaria, Romania and Serbia. We include four dimensions in our measure of multidimensional inequality income, health, education and housing. We apply various decomposition methods to these one- and multidimensional indices. In doing so, we apply standard decomposition techniques of the mean logarithmic deviation index (I0) and decompositions based on regression analysis in conjunction with the Shapley value approach.

Suggested Citation

  • Sebastian Leitner & Robert Stehrer, 2011. "Subgroup and Shapely Value Decompositions of Multidimensional Inequality: An Application to South East European Countries," wiiw Balkan Observatory Working Papers 96, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:bpaper:096
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    References listed on IDEAS

    as
    1. Maria Ana Lugo, 2005. "Comparing Multidimensional Indices of Inequality: methods and application," Working Papers 14, ECINEQ, Society for the Study of Economic Inequality.
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    10. Sebastian Leitner & Robert Stehrer, 2009. "Determinants of Inequality in Selected SEE Countries: Results from Shapley Value Decompositions," wiiw Balkan Observatory Working Papers 84, The Vienna Institute for International Economic Studies, wiiw.
    11. Osnat Israeli, 2007. "A Shapley-based decomposition of the R-Square of a linear regression," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 5(2), pages 199-212, August.
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    More about this item

    Keywords

    Multidimensional inequality; Inequality decomposition; Shapley value;
    All these keywords.

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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