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Bias Correction for Inequality Measures: An application to China and Kenya

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  • Breunig, Robert

Abstract

This article applies an analytical bias correction technique for inequality measures to income data from China and Kenya. We use the coefficient of variation squared and illustrate how the bias is downward for positively skewed distributions. The analytical bias correction technique is then compared to a jackknife estimator in a simulation exercise. The bias will be important, even for moderately large sample sizes.

Suggested Citation

  • Breunig, Robert, 2001. "Bias Correction for Inequality Measures: An application to China and Kenya," Departmental Working Papers 2001-06, The Australian National University, Arndt-Corden Department of Economics.
    • Handle: RePEc:pas:papers:2001-06
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    File URL: https://crawford.anu.edu.au/acde/publications/publish/papers/wp2001/RobertBreunig%20WP2001_06.pdf
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    Cited by:

    1. Reed, W. Robert & Webb, Rachel S., 2011. "Estimating standard errors for the Parks model: Can jackknifing help?," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 5, pages 1-14.
    2. Maria Rosaria Ferrante & Silvia Pacei, 2019. "Small Sample Bias Corrections for Entropy Inequality Measures," Biostatistics and Biometrics Open Access Journal, Juniper Publishers Inc., vol. 9(3), pages 78-80, April.

    More about this item

    Keywords

    Coefficient of variation; small sample bias correction; inequality measurement;
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