A Simple Correction to Remove the Bias of the Gini Coefficient due to Grouping

A-Tier
Journal: Review of Economics and Statistics
Year: 2011
Volume: 93
Issue: 3
Pages: 982-994

Authors (2)

Tom Van Ourti (Tinbergen Instituut) Philip Clarke (not in RePEc)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We propose a first-order bias correction term for the Gini index to reduce the bias due to grouping. It depends on only the number of individuals in each group and is derived from a measurement error framework. We also provide a formula for the remaining second-order bias. Both Monte Carlo and EU and U.S. empirical evidence show that the first-order correction reduces a considerable share of the bias, but that some remaining second-order bias is increasing in the variance. We propose a procedure that addresses the remaining second-order bias by using additional information. © 2011 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Technical Details

RePEc Handle
repec:tpr:restat:v:93:y:2011:i:3:p:982-994
Journal Field
General
Author Count
2
Added to Database
2026-01-29