Estimation and Inference for Normative Inquelity Indices
AbstractThis paper addresses the sampling distribution of two general classes of normative income inequality indices. Specifically, 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 based on a random sample of income microdata 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, using a general approximation approach. An example using Canadian family income microdata illustrates the technique.
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Bibliographic InfoPaper provided by Regina - Department of Economics in its series Papers with number 51.
Length: 23 pages
Date of creation: 1994
Date of revision:
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Web page: http://www.uregina.ca/arts/economics/
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econometrics ; evaluation;
Other versions of this item:
- Rongve, Ian & Beach, Charles, 1997. "Estimation and Inference for Normative Inequality Indices," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(1), pages 83-96, February.
- Ian Rongve & Charles Beach, 1994. "Estimation and Inference for Normative Inequality Indices," Working Papers 913, Queen's University, Department of Economics.
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- Stephen G. Donald & Yu‐Chin Hsu & Garry F. Barrett, 2012. "Incorporating covariates in the measurement of welfare and inequality: methods and applications," Econometrics Journal, Royal Economic Society, vol. 15(1), pages C1-C30, 02.
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