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Estimation of inequality indices of the cumulative distribution function

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  • Abul Naga, Ramses H.
  • Stapenhurst, Christopher

Abstract

Inequality indices for self-assessed health and life satisfaction are typically constructed as functions of the cumulative distribution function. We present a unified methodology for the estimation of the resulting inequality indices. We also obtain explicit standard error formulas in the context of two popular families of inequality indices that have emerged from this literature.

Suggested Citation

  • Abul Naga, Ramses H. & Stapenhurst, Christopher, 2015. "Estimation of inequality indices of the cumulative distribution function," Economics Letters, Elsevier, vol. 130(C), pages 109-112.
    • Handle: RePEc:eee:ecolet:v:130:y:2015:i:c:p:109-112
    DOI: 10.1016/j.econlet.2015.03.004
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    References listed on IDEAS

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    1. Benedicte Apouey, 2007. "Measuring health polarization with self‐assessed health data," Health Economics, John Wiley & Sons, Ltd., vol. 16(9), pages 875-894, September.
    2. Yves Arrighi & Mohammad Abu‐Zaineh & Bruno Ventelou, 2015. "To Count or Not to Count Deaths: Reranking Effects in Health Distribution Evaluation," Health Economics, John Wiley & Sons, Ltd., vol. 24(2), pages 193-205, February.
    3. Kobus, Martyna & Miłoś, Piotr, 2012. "Inequality decomposition by population subgroups for ordinal data," Journal of Health Economics, Elsevier, vol. 31(1), pages 15-21.
    4. Abul Naga, Ramses H. & Yalcin, Tarik, 2008. "Inequality measurement for ordered response health data," Journal of Health Economics, Elsevier, vol. 27(6), pages 1614-1625, December.
    5. Jones, Andrew M. & Rice, Nigel & Robone, Silvana & Dias, Pedro Rosa, 2011. "Inequality and polarisation in health systems' responsiveness: A cross-country analysis," Journal of Health Economics, Elsevier, vol. 30(4), pages 616-625, July.
    6. Anderson, Gordon, 1996. "Nonparametric Tests of Stochastic Dominance in Income Distributions," Econometrica, Econometric Society, vol. 64(5), pages 1183-1193, September.
    7. Allison, R. Andrew & Foster, James E., 2004. "Measuring health inequality using qualitative data," Journal of Health Economics, Elsevier, vol. 23(3), pages 505-524, May.
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    Cited by:

    1. Martyna Kobus & Radosław Kurek, 2019. "Multidimensional polarization for ordinal data," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 17(3), pages 301-317, September.
    2. Frank A Cowell & Martyna Kobus & Radoslaw Kurek, 2017. "Welfare and Inequality Comparisons for Uni- and Multi-dimensional Distributions of Ordinal Data," STICERD - Public Economics Programme Discussion Papers 31, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    3. Roman Matkovskyy, 2020. "A measurement of affluence and poverty interdependence across countries: Evidence from the application of tail copula," Bulletin of Economic Research, Wiley Blackwell, vol. 72(4), pages 404-416, October.
    4. Ramses H. Abul Naga & Christopher Stapenhurstz & Gaston Yalonetzky, 2021. "Inferring Inequality: Testing for Median-Preserving Spreads in Ordinal Data," Working Papers 2021-01, Universidad de Málaga, Department of Economic Theory, Málaga Economic Theory Research Center.
    5. Debasmita Basu & Sandip Sarkar, 2023. "Polarization in Indian Education: An Ordinal Variable Approach," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 21(3), pages 569-591, September.
    6. Ramses Abul Naga & Christopher Stapenhurst & Gaston Yalonetzky, 2020. "Asymptotic Versus Bootstrap Inference for Inequality Indices of the Cumulative Distribution Function," Econometrics, MDPI, vol. 8(1), pages 1-15, February.
    7. Sandip Sarkar & Sattwik Santra, 2020. "Extending the approaches to polarization ordering of ordinal variables," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 18(3), pages 421-440, September.
    8. Martyna Kobus & Olga Półchłopek & Gaston Yalonetzky, 2019. "Inequality and Welfare in Quality of Life Among OECD Countries: Non-parametric Treatment of Ordinal Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(1), pages 201-232, May.
    9. Valérie Bérenger & Jacques Silber, 2022. "On the Measurement of Happiness and of its Inequality," Journal of Happiness Studies, Springer, vol. 23(3), pages 861-902, March.

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    More about this item

    Keywords

    Ordered response data; Self-assessed health; Multinomial sampling; Large sample distributions; Standard errors;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • I1 - Health, Education, and Welfare - - Health

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