Brown Bag Seminar : Alexandre Jacquemain

October 30, 2019


CORE C 035

Inference for monotone single-index conditional means: a Lorenz regression approach

Alexander Jacquemain, UCLouvain ISBA


The tools available to assess how the observed economic inequality is affected by different explanatory variables are quite limited. They are mainly based on decomposition ideas, which happen to be quite restrictive. For example, we can decompose the Gini coefficient of a variable of interest (income) when it can exactly be written as a linear combination of the explanatory variables (income sources). We aim to propose a broader econometric framework to address such issue. We define the explained Gini coefficient as the Gini coefficient we would observe if individuals are ranked by a given linear combination of the explanatory variables rather than income. On that basis, we develop a regression procedure which attributes to each explanatory variable a weight with the aim of maximizing the explained inequality. We show that the underlying econometric model is a special case of the well-known single-index model. Interpretations as well as avenues for applications are presented.

Please fill the doodle by Tuesday, October 29th at noon if you plan to attend and mention whether you would like a sandwich:
Remember to bring your own cup if you would like to have some water.
Looking forward to seeing you all in the seminar!
ps: If you want to present your work, please contact us. Find the calendar here: 
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