IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

A Coefficient of Correlation Based on Ratios of Ranks and Anti-ranks

  • Agostino Tarsitano

    ()

    (Università della Calabria)

  • Rosetta Lombardo

    ()

    (Università della Calabria)

Registered author(s):

    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.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.wiso-net.de/webcgi?START=A60&DOKV_DB=ZECO&DOKV_NO=JFNSA7CADBC7D75874ECF0F861059DE614AE&DOKV_HS=0&PP=1
    File Function: Main text
    Download Restriction: Access via GENIOS - German Business Information - http://www.genios.de/r_startseite/index.ein

    File URL: http://search.ebscohost.com/login.aspx?direct=true&db=ecn&AN=1374393&site=ehost-live
    File Function: Main text
    Download Restriction: Access via EBSCOhost Econlit - http://www.ebscohost.com/

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.

    Volume (Year): 233 (2013)
    Issue (Month): 2 (March)
    Pages: 206-224

    as
    in new window

    Handle: RePEc:jns:jbstat:v:233:y:2013:i:2:p:206-224
    Contact details of provider: Postal: Licher Straße 74, 35394 Gießen
    Phone: +49 (0)641 99 22 001
    Fax: +49 (0)641 99 22 009
    Web page: http://wiwi.uni-giessen.de/home/oekonometrie/Jahrbuecher/

    More information through EDIRC

    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.:

    as in new window
    1. Croux, C. & Dehon, C., 2010. "Influence Functions of the Spearman and Kendall Correlation Measures," Discussion Paper 2010-40, Tilburg University, Center for Economic Research.
    2. Maurizio Brizzi, 1992. "Misure di variabilità, concentrazione e dissomiglianza come sintesi di rapporti," Quaderni di Dipartimento 2, Department of Statistics, University of Bologna.
    3. repec:dgr:kubcen:201040 is not listed on IDEAS
    4. 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.
    5. 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.
    6. Roll, Richard, 1978. "Ambiguity when Performance is Measured by the Securities Market Line," Journal of Finance, American Finance Association, vol. 33(4), pages 1051-69, September.
    7. Vito Peragine, 2004. "Ranking Income Distributions According to Equality of Opportunity," Journal of Economic Inequality, Springer, vol. 2(1), pages 11-30, April.
    8. Christophe Croux & Catherine Dehon, 2010. "Influence functions of the Spearman and Kendall correlation measures," Statistical Methods and Applications, Springer, vol. 19(4), pages 497-515, November.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. 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.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top 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 Winker)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.