A Coefficient of Correlation Based on Ratios of Ranks and Anti-ranks
Rank association is a fundamental tool to express dependence for ordinal data. Measures of rank correlation have been developed in several contexts for more than a century and we were able to cite more than thirty of these coefficients, from simple ones to relatively complicated definitions involving one or more systems of weights. However, only a few of these can actually be considered reasonable measures of concordance/discordance. The main drawback with the vast majority of coefficients is their resistance-to-change which appears to be of limited value for the purposes of rank comparisons that are intrinsically robust. In this article, a new non-parametric correlation coefficient is defined that is based on ratios of two ranks. In comparing it with existing coefficients, it was found to be extremely sensitive to permutation patterns.We have illustrated the potential improvement that our index may provide in economic contexts by comparing published results with those obtained through the use of this new index. The success that we have had suggests that our index may have important applications wherever the discriminatory power of the rank correlation coefficient ought to be particularly strong.
Volume (Year): 233 (2013)
Issue (Month): 2 (April)
|Contact details of provider:|| Web page: https://www.degruyter.com|
|Order Information:||Web: https://www.degruyter.com/view/j/jbnst|
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.:
- Neumark, David & Postlewaite, Andrew, 1998.
"Relative income concerns and the rise in married women's employment,"
Journal of Public Economics,
Elsevier, vol. 70(1), pages 157-183, October.
- David Neumark & Andrew Postlewaite, 1995. "Relative Income Concerns and the Rise in Married Women's Employment," NBER Working Papers 5044, National Bureau of Economic Research, Inc.
- Michael Gapen & Dale Gray & Cheng Hoon Lim & Yingbin Xiao, 2008. "Measuring and Analyzing Sovereign Risk with Contingent Claims," IMF Staff Papers, Palgrave Macmillan, vol. 55(1), pages 109-148, April.
- William Horrace & Joseph Marchand & Timothy Smeeding, 2008. "Ranking inequality: Applications of multivariate subset selection," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 6(1), pages 5-32, March.
- William C. Horrace & Joseph T. Marchand & Timothy M. Smeeding, 2005. "Ranking Inequality: Applications of Multivariate Subset Selection," Center for Policy Research Working Papers 70, Center for Policy Research, Maxwell School, Syracuse University.
- William C. Horrace & Joseph T. Marchand & Timothy M. Smeeding, 2006. "Ranking Inequality: Applications of Multivariate Subset Selection," Working Papers 21, ECINEQ, Society for the Study of Economic Inequality.
- Russell Davidson & Jean-Yves Duclos, 2000. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," Econometrica, Econometric Society, vol. 68(6), pages 1435-1464, November.
- Davidson, R. & Duclos, J.-Y., 1998. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," G.R.E.Q.A.M. 98a14, Universite Aix-Marseille III.
- Davidson, Russell & Duclos, Jean-Yves, 1998. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," Cahiers de recherche 9805, Université Laval - Département d'économique.
- Russell Davidson & Jean-Yves Duclos, 1998. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," LIS Working papers 181, LIS Cross-National Data Center in Luxembourg.
- Christophe Croux & Catherine Dehon, 2010. "Influence functions of the Spearman and Kendall correlation measures," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 19(4), pages 497-515, November.
- Majumder, Rajarshi, 2010. "Intergenerational mobility in educational & occupational attainment: a comparative study of social classes in India," MPRA Paper 40939, University Library of Munich, Germany.
- Robert J. Hill, 1999. "Comparing Price Levels across Countries Using Minimum-Spanning Trees," The Review of Economics and Statistics, MIT Press, vol. 81(1), pages 135-142, February.
- Croux, C. & Dehon, C., 2010. "Influence Functions of the Spearman and Kendall Correlation Measures," Discussion Paper 2010-40, Tilburg University, Center for Economic Research.
- Maurizio Brizzi, 1992. "Misure di variabilità, concentrazione e dissomiglianza come sintesi di rapporti," Quaderni di Dipartimento 2, Department of Statistics, University of Bologna.
- Vito Peragine, 2004. "Ranking Income Distributions According to Equality of Opportunity," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 2(1), pages 11-30, April.
- Roll, Richard, 1978. "Ambiguity when Performance is Measured by the Securities Market Line," Journal of Finance, American Finance Association, vol. 33(4), pages 1051-1069, September.
- Korhonen, Pekka & Siljamaki, Aapo, 1998. "Ordinal principal component analysis theory and an application," Computational Statistics & Data Analysis, Elsevier, vol. 26(4), pages 411-424, February. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:jns:jbstat:v:233:y:2013:i:2:p:206-224. 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: (Peter Golla)
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.