Spatial inequality is highlighted by the IMF

I have revisited spatial inequality measures in economics following a blog on inequality by Kristalina Georgieva (IMF's chief) on 7 January 2020 where the issue of spatial inequality was specifically raised. In Kanbur and Venables [2005, :8, 44, 387] measures of inequality were proposed and applied in analyses of several countries [Equador, Madagascar, Mozambique, Russia]. One I am familiar with is intraclass correlation coefficient commonly obtained in multilevel or random intercept models; another one is quite specific by Elbers et al :44ff which can be easily computed. For these countries the spatial inequalities range from 14% to 30% which are deemed meaningful, up to 30% of individual variation is accounted for by spatial inequality.

By the same logic laid out on p.8 we can also obtain spatial inequality measure for binary/indicator variables in Stata -estat icc- after -melogit-.

Ravi Kanbur and Anthony J. Venables [Eds] [2005] 'Spatial Inequality and Development'. Oxford: OUP.