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Joint hypothesis tests for multidimensional inequality indices

Ramses H. Abul Naga, Yajie Shen, Hong Il Yoo

Economics Letters 141 (2016) 138–142

Summary

An inequality index over p dimensions of well-being is decomposable by attributes if it can expressed as a function of p unidimensional inequality indices and a measure of association between the various dimensions of well-being. We exploit this decomposition framework to derive joint hypothesis tests regarding the sources of multidimensional inequality, and present Monte Carlo evidence on their finite sample behavior.

Multidimensional inequality indices; Large sample distributions; Joint hypothesis tests; Bootstrap