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Ungrouping Income Distributions: Synthesising Samples for Inequality and Poverty Analysis

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  • Shorrocks, Anthony
  • Wan, Guanghua

Abstract

We describe a new method of facilitating inequality and poverty analysis of grouped distributional data by allowing individual income observations to be reconstructed from any feasible grouping pattern. In contrast to earlier methods, our procedure ensures that the characteristics of the synthetic sample exactly match the reported values. The performance of the algorithm is evaluated first by using household survey records to compare true income observations with their synthetic counterparts, then by comparing the true and generated values of the Gini coefficient and other inequality indices. The results indicate that the new technique is capable of reproducing individual data from grouped statistics with a high degree of accuracy.

Suggested Citation

  • Shorrocks, Anthony & Wan, Guanghua, 2008. "Ungrouping Income Distributions: Synthesising Samples for Inequality and Poverty Analysis," WIDER Working Paper Series 016, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:rp2008-16
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    File URL: http://www.wider.unu.edu/sites/default/files/rp2008-16.pdf
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    1. Chotikapanich, Duangkamon & Griffiths, William E. & Rao, D. S. Prasada, 2007. "Estimating and Combining National Income Distributions Using Limited Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 25, pages 97-109, January.
    2. DAVIES, JAMES B & Shorrocks, Anthony & Sandstrom, Susanna & WOLFF, EDWARD N, 2007. "The World Distribution of Household Wealth," Center for Global, International and Regional Studies, Working Paper Series qt3jv048hx, Center for Global, International and Regional Studies, UC Santa Cruz.
    3. James B. Davies & Susanna Sandström & Anthony Shorrocks & Edward N. Wolff, 2007. "Estimating the Level and Distribution of Global Household Wealth," University of Western Ontario, Economic Policy Research Institute Working Papers 20075, University of Western Ontario, Economic Policy Research Institute.
    4. McDonald, James B, 1984. "Some Generalized Functions for the Size Distribution of Income," Econometrica, Econometric Society, vol. 52(3), pages 647-663, May.
    5. François Bourguignon & Christian Morrisson, 2002. "Inequality Among World Citizens: 1820-1992," American Economic Review, American Economic Association, vol. 92(4), pages 727-744, September.
    6. Kolenikov, Stanislav & Shorrocks, Anthony, 2003. "A Decomposition Analysis of Regional Poverty in Russia," WIDER Working Paper Series 074, World Institute for Development Economic Research (UNU-WIDER).
    7. Xavier Sala-i-Martin, 2002. "The world distribution of income (estimated from individual country distributions)," Economics Working Papers 615, Department of Economics and Business, Universitat Pompeu Fabra, revised May 2002.
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    Cited by:

    1. James B. Davies & Susanna Sandström & Anthony Shorrocks & Edward N. Wolff, 2011. "The Level and Distribution of Global Household Wealth," Economic Journal, Royal Economic Society, vol. 121(551), pages 223-254, March.
    2. Stanislaw Maciej Kot, 2016. "Estimates Of The World Distribution Of Personal Incomes Based On Country Sample Clones," GUT FME Working Paper Series A 41, Faculty of Management and Economics, Gdansk University of Technology.
    3. Stephen Jenkins, 2015. "World income inequality databases: an assessment of WIID and SWIID," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 13(4), pages 629-671, December.
    4. Yuan Zhang & Guanghua Wan, 2009. "How Precisely Can We Estimate Vulnerability to Poverty?," Oxford Development Studies, Taylor & Francis Journals, vol. 37(3), pages 277-287.
    5. Alex Cobham, Andy Sumner, 2013. "Is It All About the Tails? The Palma Measure of Income Inequality-Working Paper 343," Working Papers 343, Center for Global Development.
    6. Camelia Minoiu & Sanjay Reddy, 2008. "Kernel Density Estimation Based on Grouped Data; The Case of Poverty Assessment," IMF Working Papers 08/183, International Monetary Fund.
    7. Alex Cobham & Andrew Sumner, 2013. "Is it all about the tails? The Palma measure of income inequality," Working Papers 308, ECINEQ, Society for the Study of Economic Inequality.
    8. DAVIES, JAMES B & Shorrocks, Anthony & Sandstrom, Susanna & WOLFF, EDWARD N, 2007. "The World Distribution of Household Wealth," Center for Global, International and Regional Studies, Working Paper Series qt3jv048hx, Center for Global, International and Regional Studies, UC Santa Cruz.
    9. repec:eee:chieco:v:46:y:2017:i:c:p:208-228 is not listed on IDEAS

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    Keywords

    grouped data; income distribution; inequality; poverty;

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