The subgroup decomposable intermediate indices of inequality |
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Authors: | Satya R Chakravarty Swami Tyagarupananda |
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Institution: | (1) Economic Research Unit, Indian Statistical Institute, 203 B.T. Road, Kolkata, 700108, India;(2) Ramakrishna Mission Vidyamandira, Belur Math, Howrah, India |
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Abstract: | An inequality index is called subgroup decomposable if it can be expressed as a weighted sum of inequality values calculated
for population subgroups plus inequality arising from differences among subgroup means. This paper derives the class of subgroup
decomposable inequality indices that satisfies the Bossert–Pfingsten type intermediate inequality invariance. When the intermediate
inequality equivalence concept coincides with the relative notion of inequality, the derived class becomes the Cowell–Shorrocks
generalized entropy family.
For comments and suggestions, we are grateful to Peter J. Lambert and two anonymous referees. We
thank Chranjib Neogi for drawing the only figure of the paper. |
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Keywords: | Inequality invariance Subgroup decomposable indices Characterization |
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