Sensitivity of Inequality Measures to Extreme Values

We examine the sensitivity of estimates and inequality indices to extreme values, in the sense of their robustness properties and of their statistical performance. We establish that these measures are very sensitive to the properties of the income distribution. Estimation and inference can be dramatically affected, especially when the tail of the income distribution is heavy.

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Year of publication:	2002-03
Authors:	Cowell, Frank A ; Flachaire, Emmanuel
Institutions:	Suntory and Toyota International Centres for Economics and Related Disciplines, LSE
Subject:	Inequality measures \| statistical performance \| robustness

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Extent:	application/pdf
Series:	STICERD - Distributional Analysis Research Programme Papers.
Type of publication:	Book / Working Paper
Language:	English
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005797446