ESTIMATION AND INFERENCE FOR NORMATIVE INEQUALITY INDEXES

This paper addresses the sampling distribution of two general classes of normative income inequality indices. For approximations to the Atki nson-Kolm-Sen index of relative inequality and the Kolm-Blackorby-Dona ldson index of absolute inequality, the paper provides consistent esti mators and establishes their asymptotic normality. Asymptotic variance -covariance expressions are obtained that provide for distribution-fre e statistical inference on these measures in a straightforward fashion . The paper thus extends the principles of statistical inference to cu rrent classes of normative inequality measures and to Atkinson's equal ly distributed income measure.