The Palestinian Economy. Theoretical and Practical Challenges
The Palestinian Economy. Theoretical and Practical Challenges
The Palestinian Economy. Theoretical and Practical Challenges
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
360<br />
Abu-Zaineh – Mataria<br />
<br />
ˆ ˆ<br />
<br />
ˆ ˆ <br />
ig , yˆ<br />
G xbm d F x m<br />
(11)<br />
2a ,<br />
ig , 1 1i , g 2 2i ,<br />
<strong>The</strong> extent of inequality that is attributed to heterogeneity in behaviour associated with<br />
participation part can be captured as,<br />
I C C y<br />
(12)<br />
ˆ<br />
( PP) yˆ 2,<br />
a 1<br />
i, . g i<br />
Likewise, heterogeneity in behaviour as per conditional usage can be obtained as,<br />
<br />
ˆ ˆ<br />
<br />
ˆ ˆ <br />
ig , yˆ<br />
G xbm d F x m<br />
(13)<br />
2b ,<br />
ig , 1 1i , g 2 2i , g<br />
<strong>and</strong> the degree of inequality due to heterogeneity in conditional usage can be captured as,<br />
I C C<br />
(14)<br />
yˆ<br />
( CC) 2, b yˆ<br />
2,<br />
a<br />
ig , i,g<br />
Considering the effect of socioeconomic characteristics, the distribution in Eq. (13) can<br />
be reproduced such that socioeconomic variables are allowed to vary amongst the<br />
population. Thus,<br />
ˆ ˆ , , ˆ ,<br />
ˆ<br />
,<br />
<br />
ˆ 3<br />
i 1i 1i g 2i 2i g<br />
i y G x bm d F x m<br />
(15)<br />
<strong>The</strong> part of inequality due to the distribution of socioeconomic variables can be<br />
captured as,<br />
I C C<br />
(16)<br />
y<br />
( SEV )<br />
ˆ3 yˆ<br />
2,<br />
b<br />
i i,g<br />
Note that the simulated distribution obtained from Eq. (15) employs the individual<br />
specific- socioeconomic characteristics ( x j. i ), but the population-wide effect ( bˆ <strong>and</strong> ˆ ).