Truncation Bias and the Ordinal Evaluation of Income Inequality.

Lorenz dominance analysis is used to examine the effect of top-coding on the ordinal evaluation of U.S. income inequality across time. Current Population Survey microdata are adjusted for truncation bias, and statistical inference procedures are used to examine biennial changes in unadjusted and adjusted Lorenz curves. Beginning in 1985, the truncation bias has a significant effect on ordinal rankings of income inequality.

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Year of publication:	1994
Authors:	Bishop, John A ; Chiou, Jong-Rong ; Formby, John P
Published in:	Journal of Business & Economic Statistics. - American Statistical Association. - Vol. 12.1994, 1, p. 123-27
Publisher:	American Statistical Association

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005532310