Reduce the computation in jackknife empirical likelihood for comparing two correlated Gini indices. Issue 4 (2nd October 2019)

• Record Type: Journal Article
• Authors: Alemdjrodo, Kangni; Zhao, Yichuan
• Is Part Of: Journal of nonparametric statistics. Volume 31:Issue 4(2019)
• Page Start: 849
• Page End: 866
• Publication Date: 2019-10-02
• Subjects: Coverage probability -- Gini index -- Jackknife empirical likelihood -- U-statistic -- Wilks' theorem; Nonparametric statistics -- Periodicals; 519.5
• DOI: 10.1080/10485252.2019.1650925
• Languages: English
• ISSNs: 1048-5252

Abstract

ABSTRACT: The Gini index has been widely used as a measure of income (or wealth) inequality in social sciences. To construct a confidence interval for the difference of two Gini indices from the paired samples, Wang and Zhao ['Jackknife Empirical Likelihood for Comparing Two Gini Indices', The Canadian Journal of Statistics, 44(1), 102–119] used a profile jackknife empirical likelihood. However, the computing cost with the profile empirical likelihood could be very expensive. In this paper, we propose an alternative approach of the jackknife empirical likelihood method to reduce the computational cost. We also investigate the adjusted jackknife empirical likelihood and the bootstrap-calibrated jackknife empirical likelihood to improve coverage accuracy for small samples. Simulations show that the proposed methods perform better than Wang and Zhao's methods in terms of coverage accuracy and computational time. Real data applications demonstrate that the proposed methods work very well in practice.