On the bias of the Hoover index estimator: Results for the gamma distribution
By: Roberto Vila, Helton Saulo
Potential Business Impact:
Fixes a math problem for measuring unfairness.
The Hoover index is a widely used measure of inequality with an intuitive interpretation, yet little is known about the finite-sample properties of its empirical estimator. In this paper, we derive a simple expression for the expected value of the Hoover index estimator for general non-negative populations, based on Laplace transform techniques and exponential tilting. This unified framework applies to both continuous and discrete distributions. Explicit bias expressions are obtained for gamma population, showing that the estimator is generally biased in finite samples. Numerical and simulation results illustrate the magnitude of the bias and its dependence on the underlying distribution and sample size.
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