Bootstrap-calibrated empirical likelihood confidence intervals for the difference between two Gini indexes
Xiaofeng Lv (),
Gupeng Zhang (),
Xinkuo Xu () and
Qinghai Li ()
Additional contact information
Xiaofeng Lv: Southwestern University of Finance and Economics
Gupeng Zhang: University of Chinese Academy of Science
Xinkuo Xu: Capital University of Economics and Business
Qinghai Li: Nanjing University of Finance and Economics
The Journal of Economic Inequality, 2017, vol. 15, issue 2, No 6, 195-216
Abstract Measuring the difference between two Gini indexes is important in comparing the inequality between two groups. This paper systematically provides confidence intervals for this difference. First, normal approximation- and bootstrap-based confidence intervals are provided for the difference. Second, empirical likelihood (EL)-based confidence intervals are proposed according to a ratio statistic that is proven to have a weighted Chi-squared distribution with one degree of freedom. Third, two calibration approaches are established to improve the undercoverage issue of the EL method; these two approaches are augmented EL and bootstrap-calibrated EL. Monte Carlo simulations show that bootstrap-calibrated EL generally outperforms other methods in constructing confidence intervals. In the simulations, these methods are compared with the permutation method to test the equality of two Gini indexes. Lastly, these methods are applied to real data.
Keywords: Difference between two Gini indexes; Empirical likelihood; Augmented empirical likelihood; Bootstrap-calibrated empirical likelihood; Confidence intervals (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s10888-017-9348-8 Abstract (text/html)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:jecinq:v:15:y:2017:i:2:d:10.1007_s10888-017-9348-8
Ordering information: This journal article can be ordered from
http://www.springer. ... th/journal/10888/PS2
Access Statistics for this article
The Journal of Economic Inequality is currently edited by Stephen Jenkins
More articles in The Journal of Economic Inequality from Springer, Society for the Study of Economic Inequality Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().