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Estimation of Inequality Indices

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  • Frank A Cowell

Abstract

Inequality measures are powerful tools of applied welfare analysis. However, to use the tools effectively one has to take into account the characteristics of the data with which one usually has to work. These raise a number of common statistical problems which are addressed here for both micro-data and grouped data. The theoretical properties of inequality measures can often be used to simplify these problems and derive implementable algorithims.

Suggested Citation

  • Frank A Cowell, 1996. "Estimation of Inequality Indices," STICERD - Distributional Analysis Research Programme Papers 25, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    • Handle: RePEc:cep:stidar:25
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    References listed on IDEAS

    as
    1. Cowell, Frank A & Victoria-Feser, Maria-Pia, 1996. "Robustness Properties of Inequality Measures," Econometrica, Econometric Society, vol. 64(1), pages 77-101, January.
    2. Cowell, Frank A., 1991. "Grouping bounds for inequality measures under alternative informational assumptions," Journal of Econometrics, Elsevier, vol. 48(1-2), pages 1-14.
    3. Foster, James E., 1983. "An axiomatic characterization of the Theil measure of income inequality," Journal of Economic Theory, Elsevier, vol. 31(1), pages 105-121, October.
    4. Gastwirth, Joseph L., 1975. "The estimation of a family of measures of economic inequality," Journal of Econometrics, Elsevier, vol. 3(1), pages 61-70, February.
    5. Gastwirth, Joseph L, 1974. "Large Sample Theory of Some Measures of Income Inequality," Econometrica, Econometric Society, vol. 42(1), pages 191-196, January.
    6. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    7. repec:bla:revinw:v:25:y:1979:i:4:p:365-75 is not listed on IDEAS
    8. Davies, J. B. & Shorrocks, A. F., 1989. "Optimal grouping of income and wealth data," Journal of Econometrics, Elsevier, vol. 42(1), pages 97-108, September.
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    Citations

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    Cited by:

    1. Duangkamon Chotikapanich & William E. Griffiths, 2008. "Estimating Income Distributions Using a Mixture of Gamma Densities," Economic Studies in Inequality, Social Exclusion, and Well-Being, in: Duangkamon Chotikapanich (ed.), Modeling Income Distributions and Lorenz Curves, chapter 16, pages 285-302, Springer.
    2. Juan Ramón García, "undated". "La desigualdad salarial en España. Efectos de un diseño muestral complejo," Working Papers 2003-26, FEDEA.
    3. Ndeye Fatou FAYE & Moussa SALL & François AFFHOLDER & Françoise GERARD, 2019. "Inégalités de revenu en milieu rural dans le bassin arachidier du Sénégal," Working Paper 34d2e437-5e15-4a11-b09d-0, Agence française de développement.
    4. Duangkamon Chotikapanich & William E. Griffiths, 2006. "Bayesian Assessment of Lorenz and Stochastic Dominance in Income Distributions," Department of Economics - Working Papers Series 960, The University of Melbourne.
    5. Frank Cowell & Maria-Pia Victoria-Feser, 2003. "Distribution-Free Inference for Welfare Indices under Complete and Incomplete Information," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 1(3), pages 191-219, December.

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    More about this item

    Keywords

    Inequality; asymptotic estimates; resampling; grouping; robustness;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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