The Construction and Interpretation of Combined Cross-Section and Time-Series Inequality Datasets

65 Pages Posted: 7 Oct 2005

See all articles by Joseph F. Francois

Joseph F. Francois

University of Bern - Department of Economics; Centre for Economic Policy Research (CEPR); Vienna Institute of International Economic Studies (WIIW); University of Adelaide - School of Economics

Hugo Rojas-Romagosa

CPB Netherlands Bureau for Economic Policy Analysis

Multiple version iconThere are 2 versions of this paper

Date Written: September 2005

Abstract

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.

Keywords: Income distribution datasets, inequality trends, Lorenz curve estimation, poverty estimation

JEL Classification: C80, D31, O15

Suggested Citation

Francois, Joseph F and Rojas-Romagosa, Hugo, The Construction and Interpretation of Combined Cross-Section and Time-Series Inequality Datasets (September 2005). CEPR Discussion Paper No. 5214. Available at SSRN: https://ssrn.com/abstract=822805

Joseph F Francois (Contact Author)

University of Bern - Department of Economics ( email )

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Centre for Economic Policy Research (CEPR)

London
United Kingdom

Vienna Institute of International Economic Studies (WIIW) ( email )

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A-1010 Vienna
Austria

University of Adelaide - School of Economics ( email )

Adelaide SA, 5005
Australia
+61 8 8303 5540 (Phone)
+61 8 8223 1460 (Fax)

Hugo Rojas-Romagosa

CPB Netherlands Bureau for Economic Policy Analysis ( email )

P.O. Box 80510
2508 GM The Hague, 2585 JR
Netherlands
+31 70-338 3338 (Phone)
+31 70-338 3350 (Fax)

HOME PAGE: http://www.cpb.nl

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