Estimation of Variance of Gini Coefficient for Income Distribution

Management of Organizations (Organizaciju Vadyba: Sisteminiai Tyrimai), No. 27, pp. 47-57, 2003

Posted: 5 Apr 2009

See all articles by Christos C. Frangos

Christos C. Frangos

Technological Educational Institute of Athens - Department of Business Administration

Panagiotis Spithourakis

affiliation not provided to SSRN

Date Written: 2003

Abstract

Gini coefficient is a Statistical measure for Income Distribution. This paper is an exposition of data concerning the Gini Coefficients for the Greek Income Tax Service for the years 1960 to 2000. Using von Mises Expansions we find second-order properties of Gini Coefficient. We estimate its variance and we find confidence intervals for it. An Exponential Smoothing Time Series Model is constructed. The trend of the Greek Gini coefficient based on the annual declaration of income is calculated. Using the Jackknife Statistical method of setting robust nonparametric confidence intervals, we estimate the Variance of Gini Coefficient and we find the 95% confidence limits for the true Gini Coefficient. The conclusion is two-fold: a) We found that the trend of Greek Gini Coefficient is upwards; b) We found that the Jackknife method for variance estimation works very satisfactorily in the case of Gini Coefficient and it produces trustworthy Confidence Intervals for it.

Keywords: Gini coefficient, income, jackknife

JEL Classification: C00, H2, H24

Suggested Citation

Frangos, Christos C. and Spithourakis, Panagiotis, Estimation of Variance of Gini Coefficient for Income Distribution (2003). Management of Organizations (Organizaciju Vadyba: Sisteminiai Tyrimai), No. 27, pp. 47-57, 2003, Available at SSRN: https://ssrn.com/abstract=1372985

Christos C. Frangos (Contact Author)

Technological Educational Institute of Athens - Department of Business Administration ( email )

Agiou Spyridonos Street
Aigaleo
Athens, Attiki 12210
Greece
+302105385214 (Phone)

HOME PAGE: http://users.teiath.gr/cfragos

Panagiotis Spithourakis

affiliation not provided to SSRN ( email )

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