Factor Decomposition of Cross-country Income Inequality with Interaction Effects

• Authors: Bruno Bracalente , Cristiano Perugini
• Languages of publication: EN

Abstracts

EN

In this paper we describe a decomposition of the Th eil measures of per capita income inequality which accounts for interaction eff ects between its multiplicative factors. Our theoretical evidence, supported by an empirical application referring to EU-27 countries in the year 2010, suggest that neglecting these eff ects may strongly bias the relative importance of some factors, with consequent misleading policy implications.(original abstract)

Keywords

EN

Econometrics; Income

PL

Ekonometria; Dochody

• Publisher: Instytut Naukowo-Wydawniczy "SPATIUM"
• Journal: Central European Review of Economics & Finance
• Year: 2012
• Issue: Vol. 2, No 1
• Pages: 109-116

Contributors

author

Bruno Bracalente

• University of Perugia, Italy

author

Cristiano Perugini

• University of Perugia, Italy

References

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• Theil Henri, 1967. Economics and Information Theory. North-Holland, Amsterdam.