The Bias of the Gini Coefficient due to Grouping

Arbeitspapier

We propose a first order bias correction term for the Gini index to reduce the bias due to grouping. The first order correction term is obtained from studying the estimator of the Gini index within a measurement error framework. In addition, it reveals an intuitive formula for the remaining second order bias which is useful in empirical analyses. We analyze the empirical performance of our first order correction term using income data for 15 European countries and the US, and show that it reduces a considerable share of the bias due to grouping.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Tinbergen Institute Discussion Paper ; No. 08-095/3

Classification and Topics

• Classification: Wirtschaft ; Econometric and Statistical Methods: Other ; Personal Income, Wealth, and Their Distributions ; Welfare, Well-Being, and Poverty: General
• Subject: Gini index ; grouped data ; measurement error ; first-order correction ; Gini-Koeffizient ; Messung ; Bias ; Theorie ; Schätzung ; EU-Staaten ; USA

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ourti, Tom Van ; Clarke, Philip
• Event: Veröffentlichung
• (who): Tinbergen Institute
• (where): Amsterdam and Rotterdam
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/86827
• Last update: 10.03.2025, 11:44 AM CET