The Effect of Using Grouped Data on the Estimation of the Gini Income Elasticity

8 Pages Posted: 8 Aug 2002

See all articles by Quentin T. Wodon

Quentin T. Wodon

World Bank

Shlomo Yitzhaki

Hebrew University of Jerusalem - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: March 2002

Abstract

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

Wodon, Quentin T. and Yitzhaki, Shlomo, The Effect of Using Grouped Data on the Estimation of the Gini Income Elasticity (March 2002). Available at SSRN: https://ssrn.com/abstract=319402 or http://dx.doi.org/10.2139/ssrn.319402

Quentin T. Wodon

World Bank ( email )

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Washington, DC 20433
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202-473-1446 (Phone)
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Shlomo Yitzhaki (Contact Author)

Hebrew University of Jerusalem - Department of Economics ( email )

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Jerusalem, 91905
Israel
+972 2 659 2201 (Phone)
+972 2 652 2319 (Fax)

National Bureau of Economic Research (NBER) ( email )

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United States

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