In this paper we develop a measure of polarization for discrete distributions of non-negative grouped data. The measure takes into account the relative sizes and homogeneities of individual groups as well as the heterogeneities between all pairs of groups. It is based on the assumption that the total polarization within the distribution can be understood as a function of the polarizations between all pairs of groups. The measure allows information on existing groups within a population to be used directly to determine the degree of polarization. Thus the impact of various classifi- cations on the degree of polarization can be analysed. The treatment of the distribution’s total polarization as a function of pairwise polarizations allows statements concerning the effect of an individual pair or an individual group on the total polarization.
Income polarization, Income distribution
Corporate Finance | Finance and Financial Management
AStA Advances in Statistical Analysis
Springer Verlag (Germany)
BOMSDORF, Eckart and OTTO, Clemens A..
A new approach to the measurement of polarization for grouped data. (2007). AStA Advances in Statistical Analysis. 91, (2), 181-196. Research Collection Lee Kong Chian School Of Business.
Available at: http://ink.library.smu.edu.sg/lkcsb_research/5376
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