Statistical Inference for 2 Measures of Inequality when Incomes are Correlated
AbstractThis paper derives the asymptotic normality of the distribution of difference in the Atkinson/Kolm and generalised entropy inequality measures when incomes are correlated. We illustrate the procedure by calculating the difference in inequality before and after tax in Ireland. Our empirical results suggest that the positive correlation between incomes before and after taxes substantially reduces the variance of the estimated difference in equality.
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Bibliographic InfoPaper provided by Department of Economics, Finance and Accounting, National University of Ireland - Maynooth in its series Economics, Finance and Accounting Department Working Paper Series with number n821098.
Length: 13 pages
Date of creation: Oct 1998
Date of revision:
Find related papers by JEL classification:
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
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Cahiers de recherche
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