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On Calculation of the Extended Gini Coefficient

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Author Info
Chotikapanich, Duangkamon
Griffiths, William

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Abstract

The conventional formula for estimating the extended Gini coefficient is a covariance formula provided by Lerman and Yitzhaki (1989). We suggest an alternative estimator, obtained by approximating the Lorenz curve by a series of linear segments. In a Monte Carlo experiment designed to assess the relative bias and efficiency of the two estimators, we find that, when using grouped data with 20 or fewer groups, our new estimator has less bias and lower mean squared error than the covariance estimator. When individual observations are used, or the number of groups is 30 or more, there is little or no difference in the performance of the two estimators. Copyright 2001 by The International Association for Research in Income and Wealth.

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Article provided by Blackwell Publishing in its journal Review of Income & Wealth.

Volume (Year): 47 (2001)
Issue (Month): 4 (December)
Pages: 541-47
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Handle: RePEc:bla:revinw:v:47:y:2001:i:4:p:541-47

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Yitzhaki, Shlomo, 1983. "On an Extension of the Gini Inequality Index," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 24(3), pages 617-28, October. [Downloadable!] (restricted)
  2. Singh, S K & Maddala, G S, 1976. "A Function for Size Distribution of Incomes," Econometrica, Econometric Society, vol. 44(5), pages 963-70, September. [Downloadable!] (restricted)
  3. Lerman, Robert I. & Yitzhaki, Shlomo, 1989. "Improving the accuracy of estimates of Gini coefficients," Journal of Econometrics, Elsevier, vol. 42(1), pages 43-47, September. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Heshmati, Almas, 2004. "A Review of Decomposition of Income Inequality," IZA Discussion Papers 1221, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Walter Piesch, 2005. "A look at the structure of some extended Ginis," Metron - International Journal of Statistics, Dipartimento di Statistica, Probabilità e Statistiche Applicate - University of Rome, vol. 0(2), pages 263-296. [Downloadable!]
  3. Rolf Aaberge, 2006. "Gini’s Nuclear Family," Discussion Papers 491, Research Department of Statistics Norway. [Downloadable!]
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  4. Essama-Nssah, B., 2002. "Assessing the distributional impact of public policy," Policy Research Working Paper Series 2883, The World Bank. [Downloadable!]
  5. Heshmati, Almas, 2004. "Inequalities and Their Measurement," IZA Discussion Papers 1219, Institute for the Study of Labor (IZA). [Downloadable!]
  6. Jeroen Hinloopen & Charles van Marrewijk, 2004. "Dynamics of Chinese Comparative Advantage," Tinbergen Institute Discussion Papers 04-034/2, Tinbergen Institute. [Downloadable!]
  7. Shlomo Yitzhaki & Edna Schechtman, 2005. "The properties of the extended Gini measures of variability and inequality," Metron - International Journal of Statistics, Dipartimento di Statistica, Probabilità e Statistiche Applicate - University of Rome, vol. 0(3), pages 401-433. [Downloadable!]
  8. Araceli Ortega Diaz, 2004. "Assesment of the relationship between Inequality and Economic Growth: A panel Data Approach," Econometric Society 2004 Latin American Meetings 261, Econometric Society. [Downloadable!]
  9. Célestin Chameni Nembua, 2006. "Linking Gini to Entropy : Measuring Inequality by an interpersonal class of indices," Economics Bulletin, Economics Bulletin, vol. 4(5), pages 1-9. [Downloadable!]
  10. Jeroen Hinloopen & Charles van Marrewijk, 2005. "Comparing Distributions: The Harmonic Mass Index," Tinbergen Institute Discussion Papers 05-122/1, Tinbergen Institute, revised 30 Dec 2005. [Downloadable!]
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