Income inequality and efficiency: A decomposition approach and applications to China

Yuk Shing CHENG*, Sung Ko LI

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

18 Citations (Scopus)

Abstract

This paper suggests a new interpretation for a decomposition of the Theil inequality index when income can be expressed as multiplicative components. Applying the method to China, we find that the impact of technical inefficiency on inter-regional inequality has shown a declining trend.

Original languageEnglish
Pages (from-to)8-14
Number of pages7
JournalEconomics Letters
Volume91
Issue number1
DOIs
Publication statusPublished - Apr 2006

Scopus Subject Areas

  • Finance
  • Economics and Econometrics

User-Defined Keywords

  • China
  • Decomposition
  • Inequality
  • Technical efficiency

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