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Income Inequality Games
Charpentier A., Mussard S.
http://hal.archives-ouvertes.fr/hal-00456573
Preprint, Working Paper, ...
Humanities and Social Sciences/Economies and finances
Income Inequality Games
Arthur Charpentier 1, 2, Stéphane Mussard 3
1:  CREM Département des Sciences Economiques
Université de Rennes 1
France
2:  Department of Economics, Ecole Polytechnique
http://www.enseignement.polytechnique.fr/economie/
CNRS : UMR7176 – Polytechnique - X
Route de Saclay 91128 Palaiseau cedex
France
3:  Laboratoire Montpelliérain d'Économie Théorique et Appliquée (LAMETA)
http://www.lameta.univ-montp1.fr/
Université Montpellier I – CNRS : UMR5474 – Institut national de la recherche agronomique (INRA) : UR1135 – Centre international de hautes études agronomiques méditerranéennes [CIHEAM]
34960 Montpellier cedex 2
France
The paper explores different applications of the Shapley value for either inequality or poverty measures. We first investigate the problem of source decomposition of inequality measures, the so-called additive income sources inequality games, baed on the Shapley Value, introduced by Chantreuil and Trannoy (1999) and Shorrocks (1999). We show that multiplicative income sources inequality games provide dual results compared with Chantreuil and Trannoy's ones. We also investigate the case of multiplicative poverty games for which indices are non additively decomposable in order to capture contributions of sub-indices, which are multiplicatively connected with, as in the Sen Shorrocks-Thon poverty index. We finally show in the case of additive poverty indices that the Shapley value may be equivalent to traditional methods of decomposition such as subgroup consistency and additive decompositions.
English

Inequality – Poverty – Shapley – Source decomposition.
D31, D63.
cahier de recherche 2010-05

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