Inferences on interincome inequality parameters of a joint distribution of components of income and commodity expenditure

Abstract

This dissertation is concerned with making inferences about interincome inequality parameters of a joint distribution function of different components of income and expenditures on various commodity groups. This study demonstrates how a personal marginal distribution function of components of income can be derived from the joint distribution function mentioned above. It is further shown how a Gini measure of inequality is derived from the marginal distribution function of different components where the Gini measure of inequality depends on interincome inequality parameters. This study conjectures that the interincome inequality parameters depend on changes in various economic variables. Knowledge of the effect of changes in economic variables on the interincome inequality parameters deductively implies knowledge on how changes in economic variables affect inequality in different components of income received. Thus this study is intended to give decisionmakers another tool to use in choosing between alternative public policy actions by giving them information on the effect that their policy actions will have on the amount of inequality associated with different components of income received.