Robustness properties of inequality measures : the influence function and the principle of transfers

Cowell, Frank ORCID: 0000-0002-3778-2152 and Victoria-Feser, Maria-Pia (1993) Robustness properties of inequality measures : the influence function and the principle of transfers. DARP (1). Suntory and Toyota International Centres for Economics and Related Disciplines, London, UK.

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Abstract

Inequality measures are often used to summarise information about empirical income distributions. However , the resulting picture of the distribution and of the changes in the distribution can be severely distorted if the data are contaminated. The nature of this distortion will in general depend upon the underlying properties of the inequality measure. We investigate this issue theoretically using a technique based on the influence function, and illustrate the magnitude of the effect using a simulation. We consider both direct nonparametric estimation from the sample, and the indirect estimation using a parametric model; in the latter case we demonstrate the application of a robust estimation procedure.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://sticerd.lse.ac.uk
Additional Information:	© 1993 Frank Cowell and Maria-Pia Victoria-Feser
Divisions:	Economics STICERD Centre for Analysis of Social Exclusion
Subjects:	H Social Sciences > HB Economic Theory
JEL classification:	C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods: General > C13 - Estimation D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
Date Deposited:	27 Apr 2007
Last Modified:	01 Oct 2024 04:02
URI:	http://eprints.lse.ac.uk/id/eprint/2141

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