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Statistical Inference for Lorenz Curves with Censored Data

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  • Frank A Cowell
  • Maria-Pia Victoria-Feser

Abstract

Lorenz curves and associated tools for ranking income distributions are commonly estimated on the assumption that full, unbiased samples are available. However, it is common to find income and wealth distributions that are routinely censored or trimmed. We derive the sampling distribution for a key family of statistics in the case where data have been modified in this fashion.

Suggested Citation

  • Frank A Cowell & Maria-Pia Victoria-Feser, 1998. "Statistical Inference for Lorenz Curves with Censored Data," STICERD - Distributional Analysis Research Programme Papers 35, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    • Handle: RePEc:cep:stidar:35
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    References listed on IDEAS

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    1. Moyes, Patrick, 1987. "A new concept of Lorenz domination," Economics Letters, Elsevier, vol. 23(2), pages 203-207.
    2. Russell Davidson & Jean-Yves Duclos, 1997. "Statistical Inference for the Measurement of the Incidence of Taxes and Transfers," Econometrica, Econometric Society, vol. 65(6), pages 1453-1466, November.
    3. Fichtenbaum, Rudy & Shahidi, Hushang, 1988. "Truncation Bias and the Measurement of Income Inequality," Journal of Business & Economic Statistics, American Statistical Association, vol. 6(3), pages 335-337, July.
    4. C. M. Beach & S. F. Kaliski, 1986. "Lorenz Curve Inference with Sample Weights: An Application to the Distribution of Unemployment Experience," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 35(1), pages 38-45, March.
    5. Beach, Charles M & Richmond, James, 1985. "Joint Confidence Intervals for Income Shares and Lorenz Curves," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(2), pages 439-450, June.
    6. Beach, Charles M. & Chow, K. Victor & Formby, John P. & Slotsve, George A., 1994. "Statistical inference for decile means," Economics Letters, Elsevier, vol. 45(2), pages 161-167, June.
    7. Frank A Cowell & Maria-Pia Victoria-Feser, 1996. "Welfare Judgements in the Presence Contaminated Data," STICERD - Distributional Analysis Research Programme Papers 13, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    8. Donald W.K. Andrews, 1997. "A Simple Counterexample to the Bootstrap," Cowles Foundation Discussion Papers 1157, Cowles Foundation for Research in Economics, Yale University.
    9. Bishop, John A & Formby, John P & Smith, W James, 1991. "International Comparisons of Income Inequality: Tests for Lorenz Dominance across Nine Countries," Economica, London School of Economics and Political Science, vol. 58(232), pages 461-477, November.
    10. Charles M. Beach & Russell Davidson, 1983. "Distribution-Free Statistical Inference with Lorenz Curves and Income Shares," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 50(4), pages 723-735.
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    Cited by:

    1. Chiara Gigliarano & Pietro Muliere, 2013. "Estimating the Lorenz curve and Gini index with right censored data: a Polya tree approach," METRON, Springer;Sapienza Università di Roma, vol. 71(2), pages 105-122, September.
    2. 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

    Lorenz curve; sampling errors;

    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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