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

Abstract: In this paper, we propose a general factorial decomposition of the second Theil index of inequality at economic 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 terminants of global inequality in percapita CO2 emissions is provided as an example of application.

 Fuente: Economics bulletin, Volume 35, Issue 2, 2015, Pages 1369-1378

Editorial: Economics Bulletin

 Año de publicación: 2015

Nº de páginas: 11

Tipo de publicación: Artículo de Revista

ISSN: 1545-2921

Proyecto español: ECO2013-48326-C2-2-P ; FPU13/02155