The Construction and Interpretation of Combined Cross-Section and Time-Series Inequality Datasets
Joseph F. Francois
Johannes Kepler University Linz; Centre for Economic Policy Research (CEPR); Vienna Institute of International Economic Studies (WIIW); University of Adelaide - School of Economics
CPB Netherlands Bureau for Economic Policy Analysis
CEPR Discussion Paper No. 5214
The inequality dataset compiled in the 1990s by the World Bank and extended by the UN has been both widely used and strongly criticized. The criticisms raise questions about conclusions drawn from secondary inequality datasets in general. We develop techniques to deal with national and international comparability problems intrinsic to such datasets. The result is a new dataset of consistent inequality series, allowing us to explore problems of measurement error. In addition, the new data allow us to perform parametric non-linear estimation of Lorenz curves from grouped data. This in turn allows us to estimate the entire income distribution, computing alternative inequality indexes and poverty estimates. Finally, we have used our broadly comparable dataset to examine international patterns of inequality and poverty.
Number of Pages in PDF File: 65
Keywords: Income distribution datasets, inequality trends, Lorenz curve estimation, poverty estimation
JEL Classification: C80, D31, O15working papers series
Date posted: October 7, 2005
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo4 in 0.875 seconds