A note on the decomposition of the coefficient of variation squared: comparing entropy and Dagum's methods

Abstract

The aim of this paper is to propose a new decomposition of the coefficient of variation squared. The approach is similar to the Dagum's method when decomposing the Gini index. We compare the new method to the former entropy decomposition of this coefficient. An empirical study is elaborated. This concerns a subgroup decomposition of the non food expenditure cameronian households inequality.