TRUNCATION BIAS AND THE ORDINAL EVALUATION OF INCOME INEQUALITY

Authors
BISHOP JA CHIOU JR FORMBY JP
Citation
Ja. Bishop et al., TRUNCATION BIAS AND THE ORDINAL EVALUATION OF INCOME INEQUALITY, Journal of business & economic statistics, 12(1), 1994, pp. 123-127
Citations number
15
Categorie Soggetti
Social Sciences, Mathematical Methods",Economics
Journal title
Journal of business & economic statistics → ACNP
ISSN journal
07350015
Volume
12
Issue
1
Year of publication
1994
Pages
123 - 127
Database
ISI
SICI code
0735-0015(1994)12:1<123:TBATOE>2.0.ZU;2-O
Abstract
Lorenz dominance analysis is used to examine the effect of top-coding on the ordinal evaluation of U.S. income inequality across time. Curre nt Population Survey microdata are adjusted for truncation bias, and s tatistical inference procedures are used to examine biennial changes i n unadjusted and adjusted Lorenz curves. Beginning in 1985, the trunca tion bias has a significant effect on ordinal rankings of income inequ ality.