Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73463
Authors: 
García-Fernández, Rosa María
Gottlieb, Daniel
Palacios-González, Frederico
Year of Publication: 
2013
Citation: 
[Journal:] Economics: The Open-Access, Open-Assessment E-Journal [Volume:] 7 [Issue:] 2013-15 [Pages:] 1-40
Abstract: 
In this paper we study income polarization by first comparing the efficiency of two statistical models to identify the number of poles in the income distribution empirically. The statistical models used are a multi-resolution analysis (MRA) and a log-normal approach (LNA). We then apply the methodology to Israeli income data over the years 1997-2008 in order to empirically detect the number of income classes as sub-populations of incomes concentrated around an optimally determined number of poles. After that we compute polarization using a multiplicative normalized polarization measure, developed by Palacios-González and García-Fernández (An Intra-Group Variance Based Polarization Measure, 2010), which consists of three interacting components based on well-known axioms of Esteban and Ray (Extensions of a Measure of Polarization OCDE Countries, 1994). Finally we study the causes of the obtained polarization results in a multinomial logit analysis.
Subjects: 
polarization
poverty
multiresolution analysis
income distribution
JEL: 
H54
I21
I3
J1
O15
O53
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/3.0/
Document Type: 
Article

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