TESTING FOR MARGINAL CHANGES IN INCOME DISTRIBUTIONS WITH LORENZ AND CONCENTRATION CURVES

Authors
BISHOP JA CHOW KV FORMBY JP
Citation
Ja. Bishop et al., TESTING FOR MARGINAL CHANGES IN INCOME DISTRIBUTIONS WITH LORENZ AND CONCENTRATION CURVES, International economic review, 35(2), 1994, pp. 479-488
Citations number
24
Categorie Soggetti
Economics
Journal title
International economic review → ACNP
ISSN journal
00206598
Volume
35
Issue
2
Year of publication
1994
Pages
479 - 488
Database
ISI
SICI code
0020-6598(1994)35:2<479:TFMCII>2.0.ZU;2-Z
Abstract
Asymptotically distribution free statistical tests for comparing absol ute and relative Lorenz and concentration curves are provided. The pro cedures do not require independent samples and can be used to test for marginal changes in income distributions. The tests are illustrated u sing a large sample of tax returns that have been randomly selected fo r audit by the Internal Revenue Service. The tests reveal the marginal effects of systematic underreporting of income and tax liabilities on the U.S. income distribution.