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Estimation and Inference for Normative Inequality Indices

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  • Rongve, Ian
  • Beach, Charles

Abstract

This paper addresses the sampling distribution of two general classes of normative income inequality indices. For approximations to the Atkinson-Kolm-Sen index of relative inequality and the Kolm-Blackorby-Donaldson index of absolute inequality, the paper provides consistent estimators and establishes their asymptotic normality. Asymptotic variance-covariance expressions are obtained that provide for distribution-free statistical inference on these measures in a straightforward fashion. The paper thus extends the principles of statistical inference to current classes of normative inequality measures and to Atkinson's equally distributed income measure. Copyright 1997 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Suggested Citation

  • Rongve, Ian & Beach, Charles, 1997. "Estimation and Inference for Normative Inequality Indices," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(1), pages 83-96, February.
    • Handle: RePEc:ier:iecrev:v:38:y:1997:i:1:p:83-96
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    Cited by:

    1. Stephen G. Donald & Yu‐Chin Hsu & Garry F. Barrett, 2012. "Incorporating covariates in the measurement of welfare and inequality: methods and applications," Econometrics Journal, Royal Economic Society, vol. 15(1), pages 1-30, February.
    2. Ian Rongve, 1997. "Statistical inference for poverty indices with fixed poverty lines," Applied Economics, Taylor & Francis Journals, vol. 29(3), pages 387-392.

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