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The Estimation and Interpolation of Inequality Measures

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  • Frank A. Cowell
  • Fatemeh Mehta

Abstract

Alternative methods of computing estimates of inequality measures from grouped data are critically examined in terms of their theoretical and empirical properties. The use of a simple "split-histogram" technique of interpolation is explained and supported. Theoretical and empirical support is also provided for the "⅓/⅔ rule"—a simple computational procedure for a point estimate of an inequality measure derived from its standard grouping bounds.

Suggested Citation

  • Frank A. Cowell & Fatemeh Mehta, 1982. "The Estimation and Interpolation of Inequality Measures," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 49(2), pages 273-290.
    • Handle: RePEc:oup:restud:v:49:y:1982:i:2:p:273-290.
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    File URL: http://hdl.handle.net/10.2307/2297275
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    Cited by:

    1. Andrew E. Clark & Conchita D’Ambrosio & Anthony Lepinteur, 2021. "The fall in income inequality during COVID-19 in four European countries," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(3), pages 489-507, September.
    2. Sédi-Anne Boukaka & Giulia Mancini & Giovanni Vecchi, 2021. "Poverty and inequality in Francophone Africa, 1960s–2010s," Economic History of Developing Regions, Taylor & Francis Journals, vol. 36(1), pages 1-29, January.
    3. James B. Davies & Nicole M. Fortin & Thomas Lemieux, 2017. "Wealth inequality: Theory, measurement and decomposition," Canadian Journal of Economics, Canadian Economics Association, vol. 50(5), pages 1224-1261, December.
    4. Andrea Brandolini, 1999. "The Distribution of Personal Income in Post-War Italy: Source Description, Data Quality, and the Time Pattern of Income Inequality," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 58(2), pages 183-239, September.
    5. Allanson, Paul & Hubbard, Lionel, 1999. "On the Comparative Evaluation of Agricultural Income Distributions in the European Union," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 26(1), pages 1-17, March.
    6. Wang, ZuXiang & Smyth, Russell, 2015. "A piecewise method for estimating the Lorenz curve," Economics Letters, Elsevier, vol. 129(C), pages 45-48.
    7. Vanesa Jorda & José María Sarabia & Markus Jäntti, 2021. "Inequality measurement with grouped data: Parametric and non‐parametric methods," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 184(3), pages 964-984, July.
    8. Vanesa Jorda & Jos Mar a Sarabia & Markus J ntti, 2020. "Estimation of Income Inequality from Grouped Data," LIS Working papers 804, LIS Cross-National Data Center in Luxembourg.
    9. HAMIDOUCHE M’hamed & BOURCHID ABDELKADER Salim, 2020. "Concentration of Economic Activities in the Kingdom of Saudi Arabia," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 01, March.
    10. Andrew E. Clark & Conchita D'Ambrosio & Anthony Lepinteur, 2020. "The Fall in Income Inequality during COVID-19 in Five European Countries," Working Papers 565, ECINEQ, Society for the Study of Economic Inequality.
    11. Ichida, Yukinobu & Kondo, Katsunori & Hirai, Hiroshi & Hanibuchi, Tomoya & Yoshikawa, Goshu & Murata, Chiyoe, 2009. "Social capital, income inequality and self-rated health in Chita peninsula, Japan: a multilevel analysis of older people in 25 communities," Social Science & Medicine, Elsevier, vol. 69(4), pages 489-499, August.
    12. Tony Atkinson, 2002. "Top Incomes in the United Kingdom Over the Twentieth Century," Economics Series Working Papers 2002-W43, University of Oxford, Department of Economics.
    13. Mark W. Frank, 2008. "A New State-Level Panel of Annual Inequality Measures Over the Period 1916 – 2005," Working Papers 0802, Sam Houston State University, Department of Economics and International Business.
    14. Tatjana Miljkovic & Ying-Ju Chen, 2021. "A new computational approach for estimation of the Gini index based on grouped data," Computational Statistics, Springer, vol. 36(3), pages 2289-2311, September.
    15. Kleiber, Christian, 1997. "The existence of population inequality measures," Economics Letters, Elsevier, vol. 57(1), pages 39-44, November.
    16. Enrico D’Elia & Bianca Martelli, 2003. "Estimation of Households Income from Bracketed Income Survey Data," ISAE Working Papers 35, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
    17. Irving Fisher Committee, 2013. "Proceedings of the Sixth IFC Conference on "Statistical issues and activities in a changing environment", Basel, 28-29 August 2012," IFC Bulletins, Bank for International Settlements, number 36, July.
    18. Guanghua Wan, 2012. "Towards Greater Equality in China: The Economic Growth Dividend," Working Papers 2012/33, Maastricht School of Management.
    19. Chávez Juan Carlos & Katia García Loredo, 2015. "Identification of Regional Clusters in Mexican Manufacturing Industry," Working Papers 2015-19, Banco de México.
    20. repec:dun:dpaper:93 is not listed on IDEAS
    21. Tony Atkinson, 2002. "Top Incomes in the United Kingdom Over the Twentieth Century," Oxford Economic and Social History Working Papers _043, University of Oxford, Department of Economics.
    22. Fernando Ávila & Emilio Flores & Fabrizio López-Gallo & Javier Márquez, 2013. "Concentration indicators: assessing the gap between aggregate and detailed data," IFC Bulletins chapters, in: Bank for International Settlements (ed.), Proceedings of the Sixth IFC Conference on "Statistical issues and activities in a changing environment", Basel, 28-29 August 2012., volume 36, pages 542-559, Bank for International Settlements.
    23. López-García, Hortensia & López-Díaz, Miguel & Gil, María Angeles, 2000. "Interval-valued quantification of the inequality associated with a random set," Statistics & Probability Letters, Elsevier, vol. 46(2), pages 149-159, January.
    24. Mark W. Frank, 2009. "Inequality And Growth In The United States: Evidence From A New State‐Level Panel Of Income Inequality Measures," Economic Inquiry, Western Economic Association International, vol. 47(1), pages 55-68, January.

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