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On the Decomposition of the Foster and Wolfson Bi‐Polarization Index by Income Sources
Author(s) -
BárcenaMartin Elena,
Deutsch Joseph,
Silber Jacques
Publication year - 2018
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/roiw.12319
Subject(s) - economics , index (typography) , decomposition , econometrics , simple (philosophy) , mathematical economics , mathematics , computer science , chemistry , philosophy , organic chemistry , epistemology , world wide web
This paper proposes a simple algorithm based on a matrix formulation to compute the Foster and Wolfson bipolarization index and then to decompose it by income sources. An empirical illustration based on EU‐SILC data for the years 2007 and 2014 shows the usefulness of the proposed decomposition.