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Point Density Estimation of Changes in Income Polarization in Tanzania, 1992−2001

Point Density Estimation of Changes in Income Polarization in Tanzania, 1992−2001

John K. Mduma
Copyright: © 2014 |Pages: 16
ISBN13: 9781466643291|ISBN10: 1466643293|EISBN13: 9781466643307
DOI: 10.4018/978-1-4666-4329-1.ch004
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MLA

Mduma, John K. "Point Density Estimation of Changes in Income Polarization in Tanzania, 1992−2001." Econometric Methods for Analyzing Economic Development, edited by Peter V. Schaeffer and Eugene Kouassi, IGI Global, 2014, pp. 50-65. https://doi.org/10.4018/978-1-4666-4329-1.ch004

APA

Mduma, J. K. (2014). Point Density Estimation of Changes in Income Polarization in Tanzania, 1992−2001. In P. Schaeffer & E. Kouassi (Eds.), Econometric Methods for Analyzing Economic Development (pp. 50-65). IGI Global. https://doi.org/10.4018/978-1-4666-4329-1.ch004

Chicago

Mduma, John K. "Point Density Estimation of Changes in Income Polarization in Tanzania, 1992−2001." In Econometric Methods for Analyzing Economic Development, edited by Peter V. Schaeffer and Eugene Kouassi, 50-65. Hershey, PA: IGI Global, 2014. https://doi.org/10.4018/978-1-4666-4329-1.ch004

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Abstract

Data from two Household Budget Surveys in 1991-1992 and 2000-2001 in Tanzania indicate that there is no change in inequality between the two surveys. In spite of this finding, and impressive macroeconomic gains, there is growing discontent throughout the country because of the belief that the change from socialist to market policies has worsened income inequality. In this chapter, the authors argue that the Gini index fails to capture some inconspicuous trends in the income distribution, particularly the problem of polarization across space. Using polarization measures based on point density estimation of alienation and identification, they analyze changes in the distribution of household income in Tanzania in the 1990s. Unlike analyses that rely on the Gini index, the authors find that polarization increased significantly between 1992 and 2001. They also find evidence of increased spatial variability across regions and lack of spatial convergence of household incomes.

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