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Polarization: Concepts, Measurement, Estimation
Author(s) -
Duclos JeanYves,
Esteban Joan,
Ray Debraj
Publication year - 2004
Publication title -
econometrica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 16.7
H-Index - 199
eISSN - 1468-0262
pISSN - 0012-9682
DOI - 10.1111/j.1468-0262.2004.00552.x
Subject(s) - estimator , polarization (electrochemistry) , axiom , mathematics , statistical inference , inference , statistical physics , econometrics , mathematical economics , statistics , computer science , physics , geometry , chemistry , artificial intelligence
We develop the measurement theory of polarization for the case in which income distributions can be described using density functions. The main theorem uniquely characterizes a class of polarization measures that fits into what we call the “identity‐alienation” framework, and simultanously satisfies a set of axioms. Second, we provide sample estimators of population polarization indices that can be used to compare polarization across time or entities. Distribution‐free statistical inference results are also used in order to ensure that the orderings of polarization across entities are not simply due to sampling noise. An illustration of the use of these tools using data from 21 countries shows that polarization and inequality orderings can often differ in practice.