Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Bias of Inequality Measures in Very Small Samples: Some Analytic Results

Contents:

Author Info

Abstract

We consider the class of generalized entropy (GE) measures that are commonly used to measure inequality. When used in the context of very small samples, as is frequently the case in studies of industrial concentration, these measures are significantly biased. We derive the analytic expression for this bias for an arbitrary member of the GE family, using a small-sigma expansion. This expression is valid regardless of the sample size, is increasingly accurate as the sampling error decreases, and provides the basis for constructing ‘bias-corrected’ inequality measures. We illustrate the application of these results to data for the Canadian banking sector, and various U.S. industrial sectors.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.uvic.ca/socialsciences/economics/assets/docs/econometrics/ewp0514.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Department of Economics, University of Victoria in its series Econometrics Working Papers with number 0514.

as in new window
Length: 16 pages
Date of creation: 02 Aug 2005
Date of revision:
Handle: RePEc:vic:vicewp:0514

Note: ISSN 1485-6441
Contact details of provider:
Postal: PO Box 1700, STN CSC, Victoria, BC, Canada, V8W 2Y2
Phone: (250)721-6197
Fax: (250)721-6214
Web page: http://web.uvic.ca/econ
More information through EDIRC

Related research

Keywords: Inequality indices; generalized entropy; bias; small-sigma expansion;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Bronwyn H. Hall, 2005. "A Note on the Bias in Herfindahl-Type Measures Based on Count Data," Revue d'Économie Industrielle, Programme National Persée, vol. 110(1), pages 149-156.
  2. Breunig, Robert, 2001. "An almost unbiased estimator of the coefficient of variation," Economics Letters, Elsevier, Elsevier, vol. 70(1), pages 15-19, January.
  3. Cowell, Frank A, 1985. "Measures of Distributional Change: An Axiomatic Approach," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 52(1), pages 135-51, January.
  4. Ghosh, Arabinda, 1975. "Concentration and Growth of Indian Industries, 1948-68," Journal of Industrial Economics, Wiley Blackwell, Wiley Blackwell, vol. 23(3), pages 203-22, March.
  5. George Deltas, 2003. "The Small-Sample Bias of the Gini Coefficient: Results and Implications for Empirical Research," The Review of Economics and Statistics, MIT Press, vol. 85(1), pages 226-234, February.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:vic:vicewp:0514. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lori Cretney).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.