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Joint hypothesis tests for multidimensional inequality indices

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  • Abul Naga, Ramses H.
  • Shen, Yajie
  • Yoo, Hong Il

Abstract

An inequality index over p dimensions of well-being is decomposable by attributes if it can expressed as a function of p unidimensional inequality indices and a measure of association between the various dimensions of well-being. We exploit this decomposition framework to derive joint hypothesis tests regarding the sources of multidimensional inequality, and present Monte Carlo evidence on their finite sample behavior.

Suggested Citation

  • Abul Naga, Ramses H. & Shen, Yajie & Yoo, Hong Il, 2016. "Joint hypothesis tests for multidimensional inequality indices," LSE Research Online Documents on Economics 65678, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:65678
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    References listed on IDEAS

    as
    1. Abul Naga, Ramses H. & Geoffard, Pierre-Yves, 2006. "Decomposition of bivariate inequality indices by attributes," Economics Letters, Elsevier, vol. 90(3), pages 362-367, March.
    2. Abul Naga, Ramses H., 2010. "Statistical inference for multidimensional inequality indices," Economics Letters, Elsevier, vol. 107(1), pages 49-51, April.
    3. Mohammad Abu-Zaineh & Ramses H. Abul Naga, 2013. "Wealth, Health, and the Measurement of Multidimensional Inequality: Evidence from the Middle East and North Africa," Research on Economic Inequality, in: Health and Inequality, volume 21, pages 421-439, Emerald Group Publishing Limited.
    4. Davidson, Russell & Flachaire, Emmanuel, 2007. "Asymptotic and bootstrap inference for inequality and poverty measures," Journal of Econometrics, Elsevier, vol. 141(1), pages 141-166, November.
    5. Cowell, Frank A. & Flachaire, Emmanuel, 2007. "Income distribution and inequality measurement: The problem of extreme values," Journal of Econometrics, Elsevier, vol. 141(2), pages 1044-1072, December.
    6. Davidson, Russell & MacKinnon, James G., 2007. "Improving the reliability of bootstrap tests with the fast double bootstrap," Computational Statistics & Data Analysis, Elsevier, vol. 51(7), pages 3259-3281, April.
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    8. Frank A. Cowell, 2008. "Income Distribution and Inequality," Chapters, in: John B. Davis & Wilfred Dolfsma (ed.), The Elgar Companion to Social Economics, chapter 13, Edward Elgar Publishing.
    9. Kobus, Martyna, 2012. "Attribute decomposition of multidimensional inequality indices," Economics Letters, Elsevier, vol. 117(1), pages 189-191.
    10. Horowitz, Joel L., 2001. "The bootstrap and hypothesis tests in econometrics," Journal of Econometrics, Elsevier, vol. 100(1), pages 37-40, January.
    11. Schluter, Christian & van Garderen, Kees Jan, 2009. "Edgeworth expansions and normalizing transforms for inequality measures," Journal of Econometrics, Elsevier, vol. 150(1), pages 16-29, May.
    12. Härdle, Wolfgang & Horowitz, Joel L. & Kreiss, Jens-Peter, 2001. "Bootstrap methods for time series," SFB 373 Discussion Papers 2001,59, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    13. Zhong, Hai, 2009. "A multivariate analysis of the distribution of individual's welfare in China: What is the role of health?," Journal of Health Economics, Elsevier, vol. 28(6), pages 1062-1070, December.
    14. Horowitz, Joel L., 2001. "The Bootstrap," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 52, pages 3159-3228, Elsevier.
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    More about this item

    Keywords

    Multidimensional inequality indices; Large sample distributions; Joint hypothesis tests; Bootstrap;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics

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