author's proof - DARP

AUTHOR'S PROOF
Reference distributions and inequality measurement
JrnlID 10888_ArtID 9238_Proof# 1 - 08/01/13
Q2
Q5 t2.1 Table 2 Inequality indices Jα,k,p and Jα computed with different reference distributions
t2.2 α −1 0 0.5 1 2
Equal reference distribution
Standard GE measures (k = p = 1)
t2.3 1979 0.1218 0.1056 0.1046 0.1066 0.1201
t2.4 [0.1119;0.1355] [0.1016;0.1097] [0.1005;0.1086] [0.1023;0.1111] [0.1132;0.1271]
t2.5 1988 0.1836 0.1541 0.1543 0.1618 0.2096
t2.6 [0.1685;0.2018] [0.1468;0.1613] [0.1460;0.1634] [0.1508;0.1728] [0.1843;0.2381]
Unequal reference distributions
Top 1 % gets 99 % of the income (k = 0.01, p = 0.99)
t2.7 1979 15.29 3.370 2.906 4.403 55.39
t2.8 [14.46;16.21] [3.315;3.427] [2.887;2.926] [4.390;4.419] [55.05;55.75]
t2.9 1988 11.70 3.086 2.795 4.341 57.97
t2.10 [10.59;12.792] [2.982;3.182] [2.749;2.836] [4.300;4.378] [57.32;58.66]
Top 5 % gets 99 % of the income (k = 0.05, p = 0.99)
t2.11 1979 3.803 2.080 2.271 3.768 44.43
t2.12 [3.708;3.907] [2.057;2.106] [2.254;2.288] [3.747;3.789] [44.08;44.74]
t2.13 1988 3.194 1.915 2.151 3.631 44.14
t2.14 [3.088;3.293] [1.882;1.945] [2.123;2.175] [3.591;3.665] [43.47;44.73]
Continuous reference distributions
Beta(1,1) or Uniform(0,1)
t2.15 1979 0.0320 0.0406 0.0483 0.0613 0.1457
t2.16 [0.0308;0.0333] [0.0391;0.0421] [0.0465;0.0501] [0.0589;0.0638] [0.1311;0.1648]
t2.17 1988 0.0339 0.0418 0.0486 0.0591 0.1125
t2.18 [0.0313;0.0373] [0.0383;0.0461] [0.0444;0.0536] [0.0538;0.0655] [0.1014;0.1276]
UNCORRECTED PROOF