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Estimating and Combining National Income Distributions Using Limited Data

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  • Chotikapanich, Duangkamon
  • Griffiths, William E.
  • Rao, D. S. Prasada

Abstract

A major problem encountered in studies of income inequality at regional and global levels is the estimation of income distributions from data that are in a summary form. In this paper we estimate national and regional income distributions within a general framework that relaxes the assumption of constant income within groups. A technique to estimate the parameters of a beta-2 distribution 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 two benchmark years, 1988 and 1993.
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Suggested Citation

  • Chotikapanich, Duangkamon & Griffiths, William E. & Rao, D. S. Prasada, 2007. "Estimating and Combining National Income Distributions Using Limited Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 25, pages 97-109, January.
    • Handle: RePEc:bes:jnlbes:v:25:y:2007:p:97-109
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    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C16 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Econometric and Statistical Methods; Specific Distributions
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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