Gluschenko, Konstantin (2015): ‘Williamson’s Fallacy’ in Estimation of InterRegional Inequality.
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Abstract
When estimating regional inequality, many economists use inequality indices weighted by the regions’ shares in the national population. Although this approach is widespread, its adequacy has not received attention in the regional science literature. This paper proves that such approach is conceptually inconsistent, yielding an estimate of interpersonal inequality among the whole population of the country rather than an estimate of regional inequality. Nevertheless, as a measure of interpersonal inequality, such an estimate is very rough (up to misleading) and does not always have an intuitive interpretation. Moreover, the populationweighted inequality indices do not meet the requirements for an adequate inequality measure.
Item Type:  MPRA Paper 

Original Title:  ‘Williamson’s Fallacy’ in Estimation of InterRegional Inequality 
English Title:  ‘Williamson’s Fallacy’ in Estimation of InterRegional Inequality 
Language:  English 
Keywords:  Inequality index, Weighting by population, Williamson coefficient of variation, inequality axioms 
Subjects:  D  Microeconomics > D3  Distribution > D31  Personal Income, Wealth, and Their Distributions D  Microeconomics > D6  Welfare Economics > D63  Equity, Justice, Inequality, and Other Normative Criteria and Measurement R  Urban, Rural, Regional, Real Estate, and Transportation Economics > R1  General Regional Economics > R10  General 
Item ID:  79411 
Depositing User:  Konstantin Gluschenko 
Date Deposited:  27 May 2017 09:20 
Last Modified:  13 Jan 2018 04:19 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/79411 
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‘Williamson’s Fallacy’ in Estimation of InterRegional Inequality. (deposited 08 May 2016 06:00)

‘Williamson’s Fallacy’ in Estimation of InterRegional Inequality. (deposited 13 Dec 2016 15:17)
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‘Williamson’s Fallacy’ in Estimation of InterRegional Inequality. (deposited 13 Dec 2016 15:17)