Estimating and Combining National Income Distributions Using Limited Data
Recently, there has been a resurgence of studies on the distribution of income and inequality at regional and global levels, largely driven by the concerns of economists, international development organisations and the general public about the overall effects of globalisation on growth and inequality. A major data problem encountered in these studies is the nature of income distribution data that are available mainly in a summary form that includes mean (average) income and income shares of quintile or decile groups of the population. Past studies have either ignored distributional characteristics within each population sub-group, implying that all individuals in a quintile or decile group have the same income, or used simple distributions like the lognormal or Pareto to model income distribution within each country. The aim of the paper is to estimate national and regional income distributions within a more general framework that relaxes the assumption of constant-income-within-groups and is based on a general and versatile class of income distributions. A technique to estimate parameters of a class of generalised Beta distributions using grouped data is proposed. Regional income distribution is modelled using a mixture of country-specific distributions and its properties are examined. The techniques are used to analyse national and regional inequality trends for eight East Asian countries and three benchmark years 1988, 1993 and 2000.
(This abstract was borrowed from another version of this item.)
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 25 (2007)
Issue (Month): (January)
|Contact details of provider:|| Web page: http://www.amstat.org/publications/jbes/index.cfm?fuseaction=main|
|Order Information:||Web: http://www.amstat.org/publications/index.html|
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.:
- McDonald, James B, 1984. "Some Generalized Functions for the Size Distribution of Income," Econometrica, Econometric Society, vol. 52(3), pages 647-63, May.
- Quah, Danny, 2002. "One Third of the World's Growth and Inequality," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Jordi Gali & Tommaso Monacelli, 2002.
"Monetary Policy and Exchange Rate Volatility in a Small Open Economy,"
NBER Working Papers
8905, National Bureau of Economic Research, Inc.
- Galí, Jordi & Monacelli, Tommaso, 2002. "Monetary Policy and Exchange Rate Volatility in a Small Open Economy," CEPR Discussion Papers 3346, C.E.P.R. Discussion Papers.
- Jordi Galí & Tommaso Monacelli, 2004. "Monetary policy and exchange rate volatility in a small open economy," Economics Working Papers 835, Department of Economics and Business, Universitat Pompeu Fabra.
- Branko Milanovic, 2003. "The Ricardian Vice: Why Sala-i-Martin’s calculations of world income inequality are wrong," HEW 0305003, EconWPA.
- McDonald, James B. & Xu, Yexiao J., 1995.
"A generalization of the beta distribution with applications,"
Journal of Econometrics,
Elsevier, vol. 66(1-2), pages 133-152.
- McDonald, James B. & Xu, Yexiao J., 1995. "A generalization of the beta distribution with applications," Journal of Econometrics, Elsevier, vol. 69(2), pages 427-428, October.
- Wilfling, Bernd, 1996. "Lorenz ordering of generalized beta-II income distributions," Journal of Econometrics, Elsevier, vol. 71(1-2), pages 381-388.
- Quah, Danny, 2002. "One Third of the World's Growth and Inequality," CEPR Discussion Papers 3316, C.E.P.R. Discussion Papers.
- Xavier Sala-i-Martin, 2002.
"The Disturbing "Rise" of Global Income Inequality,"
NBER Working Papers
8904, National Bureau of Economic Research, Inc.
- McDonald, James B & Ransom, Michael R, 1979. "Functional Forms, Estimation Techniques and the Distribution of Income," Econometrica, Econometric Society, vol. 47(6), pages 1513-25, November.
- Chotikapanich, Duangkamon & Valenzuela, Rebecca & Rao, D S Prasada, 1997. "Global and Regional Inequality in the Distribution of Income: Estimation with Limited and Incomplete Data," Empirical Economics, Springer, vol. 22(4), pages 533-46.
- Deininger, K & Squire, L, 1996. "Measuring Income Inequality : A New Data-Base," Papers 537, Harvard - Institute for International Development.
- Steve Dowrick & Muhammad Akmal, 2005. "Contradictory Trends In Global Income Inequality: A Tale Of Two Biases ," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(2), pages 201-229, 06.
When requesting a correction, please mention this item's handle: RePEc:bes:jnlbes:v:25:y:2007:p:97-109. 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: (Christopher F. Baum)
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.