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Generalized Recentered Influence Function Regressions

Author

Listed:
  • Javier Alejo

    (Instituto de Economía, Universidad de la República, Montevideo 11200, Uruguay
    These authors contributed equally to this work.)

  • Antonio Galvao

    (Department of Economics, Michigan State University, East Lansing, MI 48824, USA
    These authors contributed equally to this work.)

  • Julián Martínez-Iriarte

    (Department of Economics, University of California-Santa Cruz, Santa Cruz, CA 95064, USA
    These authors contributed equally to this work.)

  • Gabriel Montes-Rojas

    (Instituto Interdisciplinario de Economía Política-CONICET, Universidad de Buenos Aires, Ciudad Autónoma de Buenos Aires C1122, Argentina
    These authors contributed equally to this work.)

Abstract

This paper suggests a generalization of covariate shifts to study distributional impacts on inequality and distributional measures. It builds on the recentered influence function (RIF) regression method, originally designed for location shifts in covariates, and extends it to general policy interventions, such as location–scale or asymmetric interventions. Numerical simulations for the Gini, Theil, and Atkinson indexes demonstrate strong performance across a myriad of cases and distributional measures. An empirical application examining changes in Mincerian equations is presented to illustrate the method.

Suggested Citation

  • Javier Alejo & Antonio Galvao & Julián Martínez-Iriarte & Gabriel Montes-Rojas, 2025. "Generalized Recentered Influence Function Regressions," Econometrics, MDPI, vol. 13(2), pages 1-14, April.
    • Handle: RePEc:gam:jecnmx:v:13:y:2025:i:2:p:19-:d:1637228
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