 Robust estimation of personal income distribution modelsLSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library Abstract: Statistical problems in modelling personal income distributions include estimation procedures, testing and model choice. Typically, the parameters of a given model are estimated by classical procedures such as maximum likelihood and least squares estimators. Unfortunately, the classical methods are very sensitive to model derivations such as gross errors in the data, grouping effects or model misspecifications. These deviations can ruin the values of the estimators and inequality measures and can produce false information about the distribution of the personal income in a given country. In this paper we discuss the use of robust techniques for the estimation of income distributions. These methods behave as the classical procedures at the model but are less influenced by model deviations and can be applied to general estimation problems. Keywords: Personal income distribution; inequality measures; parametric models; influence function; M-estimator. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:6633 Access Statistics for this paper More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC. |
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