Abul Naga, RH, Stapenhurst, C and Yalonetzky, G orcid.org/0000-0003-2438-0223 (2024) Inferring inequality: Testing for median-preserving spreads in ordinal data. Econometric Reviews. ISSN 0747-4938
Abstract
The median-preserving spread (MPS) ordering for ordinal variables has become ubiquitous in the inequality literature. We devise statistical tests of the hypothesis that a distribution G is not an MPS of a distribution F. Rejecting this hypothesis enables the conclusion that G is more unequal than F according to the MPS criterion. Monte Carlo simulations and novel graphical techniques show that a simple, asymptotic Z test is sufficient for most applications. We illustrate our tests with two applications: happiness inequality in the US and self-assessed health in Europe.
Metadata
Item Type: | Article |
---|---|
Authors/Creators: |
|
Copyright, Publisher and Additional Information: | © 2024 Taylor & Francis Group, LLC. This is an author produced version of an article published in Econometric Reviews. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Hypothesis testing; inequality measurement; median-preserving spread; ordinal data |
Dates: |
|
Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Economics Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 09 Mar 2023 16:29 |
Last Modified: | 12 Mar 2024 15:27 |
Status: | Published online |
Publisher: | Taylor & Francis |
Identification Number: | https://doi.org/10.1080/07474938.2024.2306069 |
Download
Filename: Inferring_Inequality__Econometric_Reviews_ (1).pdf