On the decomposition of the Esteban and Ray index by income sources

Elena Bárcena-Martín; Jacques Silber

doi:10.3390/econometrics6020017

On the decomposition of the Esteban and Ray index by income sources

Elena Bárcena-Martín, Jacques Silber

Department of Economics

Research output: Contribution to journal › Article › peer-review

1 Scopus citations

Abstract

This paper proposes a simple algorithm based on a matrix formulation to compute the Esteban and Ray (ER) polarization index. It then shows how the algorithm introduced leads to quite a simple decomposition of polarization by income sources. Such a breakdown was not available hitherto. The decomposition we propose will thus allow one to determine the sign, as well as the magnitude, of the impact of the various income sources on the ER polarization index. A simple empirical illustration based on EU data is provided.

Original language	English
Article number	17
Journal	Econometrics
Volume	6
Issue number	2
DOIs	https://doi.org/10.3390/econometrics6020017
State	Published - Jun 2018

Bibliographical note

Publisher Copyright:
© 2018 by the authors. Licensee MDPI, Basel, Switzerland.

Funding

Acknowledgments: Elena Bárcena-Martín gratefully acknowledges the financial support provided by the University of Malaga.

Funders	Funder number
Universidad de Málaga

Keywords

Decomposition
Esteban and ray polarization index
Income sources
Polarization

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10.3390/econometrics6020017

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On the decomposition of the Esteban and Ray index by income sources

Abstract

Bibliographical note

Funding

Keywords

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