Location of Repository

Why not to aggregate up: the influence of aggregation on the ordering of distributions

By Stephen Howes

Abstract

Researchers in many fields of economics often compare distributions using some criterion or another of inequality, poverty or welfare. It is standard practice to base such comparative analysis on aggregated data. But will the results obtained be dependent on the degree of aggregation of the data? This paper argues, on the basis of a simulation study, that they will be since the probability of obtaining a ranking can increase rapidly with the degree of aggregation. Aggregation exaggerates the differences between similar distributions and overlooks crossings at the lower tail. A change in research strategy where possible and statistical inference used in its place

Topics: HB Economic Theory
Publisher: Suntory and Toyota International Centres for Economics and Related Disciplines, London School of Economics and Political Science
Year: 1993
OAI identifier: oai:eprints.lse.ac.uk:6637
Provided by: LSE Research Online
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • http://sticerd.lse.ac.uk (external link)
  • http://eprints.lse.ac.uk/6637/ (external link)
  • Suggested articles


    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.