On Estimation of Inter-Regional Inequality

Many publications on inter-regional inequality use weighting by region’s share in the national population in estimating an inequality index. This paper demonstrates that, first, such an approach is conceptually inconsistent, yielding a (very rough) estimate of interpersonal inequality of the country...

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Bibliographic Details
Main Author: Konstantin Pavlovich Gluschenko
Format: Article
Language:Russian
Published: Economic Research Institute of the Far East Branch of the Russian Academy of Sciences 2015-12-01
Series:Prostranstvennaâ Èkonomika
Subjects:
Online Access:http://spatial-economics.com/eng/images/spatial-econimics/4_2015/SE.2015.4.039-058.%20Gluschenko.pdf
Description
Summary:Many publications on inter-regional inequality use weighting by region’s share in the national population in estimating an inequality index. This paper demonstrates that, first, such an approach is conceptually inconsistent, yielding a (very rough) estimate of interpersonal inequality of the country’s whole population rather than an estimate of inter-regional inequality, and second, an inadequate weighting leads to the incorrect value of an inequality index. The author illustrates distortions caused by the use of weighting with the help of the income inequality among Russian regions (measured by the Gini coefficient)
ISSN:1815-9834
2587-5957