Inequality and Poverty in Africa: Comparing Panels of Income Distributions from Different Data Sources

Duangkamon Chotikapanich (duangkamon.chotikapanich@monash.edu), William E. Griffiths (w.griffiths@unimelb.edu.au), Gholamreza Hajargasht (rhajargasht@swin.edu.au), D.S. Prasada Rao (d.rao@uq.edu.au) and Charley Xia
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Duangkamon Chotikapanich: Department of Econometrics & Business Statistics, Monash University, https://research.monash.edu/en/persons/duangkamon-chotikapanich
William E. Griffiths: Department of Economics, The University of Melbourne, https://www.findanexpert.unimelb.edu.au/display/person7036
Gholamreza Hajargasht: Department of Accounting, Economics & Finance, https://www.swinburne.edu.au/research/our-research/access-our-research/find-a-researcher-or-supervisor/researcher-profile/?id=rhajargasht
Charley Xia: Australian Bureau of Agricultural and Resource Economics, https://www.researchgate.net/profile/Charley_Xia

Department of Economics - Working Papers Series from The University of Melbourne

Abstract: A panel of income distributions for 28 African countries for the period 1997-2010 is developed. For each country/year, generalised method of moments estimates of mixtures of lognormal distributions are estimated from income share data and four different sources of mean incomes – PWT7.1, PWT8.0, PWT9.0 and UQICD. Methods for interpolating or extrapolating shares are proposed for country/years where share data are not available. The estimated income distributions are used to compute measures of inequality and poverty for each country/year and for the combined 28 countries. All estimates are provided in a supplementary appendix for use by future researchers. Using the results for six example countries and Africa as a whole, we demonstrate how critical choice of mean incomes can be for poverty measurement.

Keywords: lognormal mixtures; generalised method of moments; interpolation; extrapolation (search for similar items in EconPapers)
JEL-codes: C33 O55 (search for similar items in EconPapers)
Pages: 120
Date: 2018-08
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