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Abstract

This paper examines the changes in the farm sector wealth from 1950 through 1999. The study uses Theil's entropy-based measure of inequality of farm equity by ten regions of the U.S. The entropy-measure is then used to decompose U.S. inequality into within-region and between-region differences. Results show that for the period 1950 to 1993, relative to the number of farms per state, farm wealth in the U.S. became more equally distributed. Further, results show that inequality in wealth may be on the rise in recent years. Key words: inequality, Theil's entropy, farm equity, regional decomposition.

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