JSM 2004 - Toronto

Abstract #301210

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Activity Number: 406
Type: Contributed
Date/Time: Thursday, August 12, 2004 : 8:30 AM to 10:20 AM
Sponsor: Business and Economics Statistics Section
Abstract - #301210
Title: A Modified Coefficient of Variation for Partially Grouped Data
Author(s): Keith Ord*+ and Harvey Iglarsh
Companies: Georgetown University and Georgetown University
Address: McDonough School of Business, Washington, DC, 20057,
Keywords: coefficient of variation ; income distributions ; inequality measures ; variable group width
Abstract:

Observations from a bivariate distribution (X, Y) are grouped according to their X-values. The coefficient of variation (CV) of Y within each subgroup is often used to compare the variability in Y across those subgroups. Existing methods restrict usage to subgroups of equal width. We develop an extension of the CV that allows comparison of subgroups with unequal ranges. We use this measure to examine horizontal equity (the proposition that taxpayers with equal ability to pay [X] should have the same tax liability [Y]) in different income tax systems using grouped data from public IRS data files.


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