Estimating and Combining National Income Distributions using Limited Data
A major problem encountered in studies of income inequality at regional and global levels is the estimation of income distributions from data that are in a summary form. In this paper we estimate national and regional income distributions within a general framework that relaxes the assumption of constant income within groups. A technique to estimate the parameters of a beta-2 distribution using grouped data is proposed. Regional income distribution is modelled using a mixture of country-specific distributions and its properties are examined. The techniques are used to analyse national and regional inequality trends for eight East Asian countries and two benchmark years, 1988 and 1993.
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