Sensitivity of Inequality Measures to Extreme Values

Frank Cowell () and Emmanuel Flachaire

STICERD - Distributional Analysis Research Programme Papers from Suntory and Toyota International Centres for Economics and Related Disciplines, LSE

Abstract: 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.

Keywords: Inequality measures; statistical performance; robustness. (search for similar items in EconPapers)
Date: 2002-03
New Economics Papers: this item is included in nep-lab and nep-ltv
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Citations: View citations in EconPapers (14)

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Related works:
Working Paper: Sensitivity of inequality measures to extreme values (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:stidar:60

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