The Effect of Using Grouped Data on the Estimation of the Gini Income Elasticity
8 Pages Posted: 8 Aug 2002
Date Written: March 2002
The use of grouped data results in a downward bias in estimates of inequality because grouping omits intra-group inequality. This note shows that using grouped data may not lead to similar difficulties when estimating statistics such as the Gini income elasticity, which provides information on the impact on inequality of a marginal change in an income source, tax, or transfer.
Keywords: poverty, inequality, social exclusion, targeted programs
JEL Classification: D33, H53, I38
Suggested Citation: Suggested Citation