Interval estimators for inequality measures using grouped data

DOI10.1007/978-981-15-1960-4_17MaRDI QIDQ3305511zbMATH OpenOpenAlexFDO

Authors Dilanka Shenal Dedduwakumara, Luke A. Prendergast

Publication date 7 August 2020

Published in Communications in Computer and Information Science (Search for Journal in Brave)

Full work available at URL https://arxiv.org/abs/1907.07850

zbMATH Keywords

bootstrap confidence intervalsgeneralized lambda distributionGini indexhistogramsinequality measures

Mathematics Subject Classification ID

Foundations and philosophical topics in statistics (62A01) Nonparametric tolerance and confidence regions (62G15) Applications of statistics to economics (62P20) Statistical aspects of big data and data science (62R07)

Abstract: Income inequality measures are often used as an indication of economic health. How to obtain reliable confidence intervals for these measures based on sampled data has been studied extensively in recent years. To preserve confidentiality, income data is often made available in summary form only (i.e. histograms, frequencies between quintiles, etc.). In this paper, we show that good coverage can be achieved for bootstrap and Wald-type intervals for quantile-based measures when only grouped (binned) data are available. These coverages are typically superior to those that we have been able to achieve for intervals for popular measures such as the Gini index in this grouped data setting. To facilitate the bootstrapping, we use the Generalized Lambda Distribution and also a linear interpolation approximation method to approximate the underlying density. The latter is possible when groups means are available. We also apply our methods to real data sets.

Recommendations

• Confidence interval estimation for inequality indices of the Gini family
• Asymptotic Confidence Intervals for a New Inequality Measure
• Measuring inequality with interval data
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Cites work

• A Guide to the Dagum Distributions
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• Confidence intervals for quantiles using generalized lambda distributions
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• Estimation of the Generalized Lambda Distribution Parameters for Grouped Data
• Fitting the generalized lambda distribution to data: a method based on percentiles
• scientific article; zbMATH DE number 7099508 (Why is no real title available?)
• More accurate confidence intervals in exponential families
• Quantile versions of the Lorenz curve
• Some Generalized Functions for the Size Distribution of Income
• The Advantages of Using Group Means in Estimating the Lorenz Curve and Gini Index From Grouped Data
• The Class of Additively Decomposable Inequality Measures

Cited in

(4)

• Bounding shares and quantiles from grouped data when group means are known
• CONTRIBUTIONS TO ESTIMATION AND MODELING USING QUANTILES
• Efficient Estimation of the Lorenz Curve and Associated Inequality Measures from Grouped Observations
• Grouping bounds for inequality measures under alternative informational assumptions

Describes a project that uses

Uses Software

• bda
• ineq
• R

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