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A simple correction to remove the bias of the gini coefficient due to grouping

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dc.contributor.authorVan Ourti, Tom
dc.contributor.authorClarke, Philip
dc.date.accessioned2015-12-10T22:20:32Z
dc.date.issued2011
dc.date.updated2015-12-09T08:47:39Z
dc.description.abstractAbstract-We propose a first-order bias correction term for the Gini index to reduce the bias due to grouping. It depends on only the number of individuals in each group and is derived from a measurement error framework. We also provide a formula for the remaining second-order bias. Both Monte Carlo and EU and U.S. empirical evidence show that the first-order correction reduces a considerable share of the bias, but that some remaining second-order bias is increasing in the variance. We propose a procedure that addresses the remaining second-order bias by using additional information.
dc.identifier.issn0034-6535
dc.identifier.urihttp://hdl.handle.net/1885/51963
dc.publisherMIT Press
dc.sourceReview of Economics and Statistics
dc.titleA simple correction to remove the bias of the gini coefficient due to grouping
dc.typeJournal article
local.bibliographicCitation.issue3
local.bibliographicCitation.lastpage994
local.bibliographicCitation.startpage982
local.contributor.affiliationVan Ourti, Tom, Erasmus School of Economics
local.contributor.affiliationClarke, Philip, College of Business and Economics, ANU
local.contributor.authoruidClarke, Philip, a166255
local.description.embargo2037-12-31
local.description.notesImported from ARIES
local.identifier.absfor140302 - Econometric and Statistical Methods
local.identifier.absseo970114 - Expanding Knowledge in Economics
local.identifier.ariespublicationf5625xPUB236
local.identifier.citationvolume93
local.identifier.doi10.1162/REST_a_00103
local.identifier.scopusID2-s2.0-80053977443
local.type.statusPublished Version

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