# Inequalities and Poverty #2

The second part of the graduate course on inequalities and poverty will be based on the slides below

# Inequalities, course 3

Tomorrow, we will discuss inequality indices, from a statistical perspective, and also an axiomatic point of view. In order to illustrate, we will use to following dataset,

`> income <- read.csv("http://www.vcharite.univ-mrs.fr/pp/lubrano/cours/fes96.csv",sep=";",header=FALSE)\$V1`

Slides can be found online. Since it is the first year I give this course, all comments are welcome…

# Inequalities, course 2

As mentioned last week, tomorrow, we will work with datasets, and start the part on the econometrics of inequality. I have uploded some slides, but additional concepts and tools will be mentioned on the black board (or on the computer, while coding). We will use some simulated data (mentioned in the slides), as well as us_income, on binned data.

# Log-transform kernel density estimation of income distribution

Our paper Log-transform kernel density estimationof income distribution, written with Emmanuel Flachaire is now available on http://papers.ssrn.com/id=2514882,

Standard kernel density estimation methods are very often used in practice to estimate density function. It works well in numerous cases. However, it is known not to work so well with skewed, multimodal and heavy-tailed distributions. Such features are usual with income distributions, defined over the positive support. We first show that a preliminary logarithmic transformation of the data, combined with standard kernel density estimation methods, can provide a much better fit of the overall density estimation. Then, we show that the fit of the bottom of the distribution may not be satisfactory, even if a better fit of the upper tail can be obtained in general.

# Income distribution and Tour de France

A few days ago, Jean-François Mignot published an interesting article entitled Tour de France 2014 : pourquoi le vainqueur gagne 100 fois plus que le 10e. In this article, we have the following graph, with the income of the cyclist, as a function of his final ranking (the data where downloaded from http://sportbuzzbusiness.fr/)

```> bike=read.csv(
+ "http://freakonometrics.free.fr/tourdefrance.csv",
```> library(ineq)