Update on Inequality

[ProdigyofZen]

Re: Update on Inequality

Did anyone catch the "Duping Smile" when Thatcher says "This is a doctrine of which I have never subscribed?"

[Slimprofits]

Re: Update on Inequality

On the Biases in the Estimation of Inequality Using Bracketed Quantile Contributions ~~~ Nassim Nicholas Taleb, Raphael Douady. The authors argue that "we get a historical illusion of rise in inequality when it has been there all along", partially due to the randomness of the estimation.

In fact, as we will show in this discussion, longer samples resulting from population and economic growth will make such a measure converge by increasing over time, for no other reason than expansion in sample size.

link to pdf: https://docs.google.com/file/d/0B8nh...pli=1&sle=true --- edit:

Abstract—In fat-tailed domains, sample measures of top centile contributions to wealth are biased, unstable estimators extremely sensitive to sample size; they tend vary over time merely from the increase of sample space, thus providing the illusion of structural changes in inequality. They are also inconsistent under aggregation.