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Estimation and Inference for Normative Inequality Indices

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Author Info
Rongve, Ian
Beach, Charles

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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.

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Article provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.

Volume (Year): 38 (1997)
Issue (Month): 1 (February)
Pages: 83-96
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Handle: RePEc:ier:iecrev:v:38:y:1997:i:1:p:83-96

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