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Estimating and Combining National Income Distributions Using Limited Data

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

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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Article provided by American Statistical Association in its journal Journal of Business and Economic Statistics.

Volume (Year): 25 (2007)
Issue (Month): (January)
Pages: 97-109

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Handle: RePEc:bes:jnlbes:v:25:y:2007:p:97-109
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  2. Branko Milanovic, 2003. "The Ricardian Vice: Why Sala-i-Martin’s calculations of world income inequality are wrong," HEW 0305003, EconWPA.
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  7. 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.
  8. Xavier Sala-i-Martin, 2001. "The disturbing 'rise' of global income inequality," Economics Working Papers 616, Department of Economics and Business, Universitat Pompeu Fabra, revised Apr 2002.
  9. McDonald, James B, 1984. "Some Generalized Functions for the Size Distribution of Income," Econometrica, Econometric Society, vol. 52(3), pages 647-63, May.
  10. 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.
  11. Wilfling, Bernd, 1996. "Lorenz ordering of generalized beta-II income distributions," Journal of Econometrics, Elsevier, vol. 71(1-2), pages 381-388.
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