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THE DISAGGREGATION OF THE GIN1 COEFFICIENT BY FACTOR COMPONENTS AND ITS APPLICATIONS TO AUSTRALIA
Author(s) -
Podder Nripesh
Publication year - 1993
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/j.1475-4991.1993.tb00437.x
Subject(s) - gini coefficient , economics , econometrics , inequality , income elasticity of demand , economic inequality , redistribution (election) , income distribution , mathematics , mathematical analysis , politics , political science , law
This paper demonstrates the proper use of the disaggregation of the Gini coefficient by factor components by deriving a formula of the elasticity of the Gini coefficient with respect to specific income components. The method is then applied to Australian household expenditure survey data to find the effects of various components of income on overall income inequality. The results are important in examining the effects of growth in specific components on the overall inequality and hence in policy decisions with respect to redistribution of income.