For the Kravis, Heston and Summers data (Table 10.26), combine the deciles into quintiles and calculate the

Question:

For the Kravis, Heston and Summers data (Table 10.26), combine the deciles into quintiles and calculate the Gini coefficient from the quintile data. How does your answer compare with the answer given in the text, based on deciles? What do you conclude about the degree of bias?

Table 10.26

Decile 1 3 4 7 8 9 10 % GDP 1.5 2.1 2.4 2.4 3.3 5.2 8.4 17.1 24.1 33.5 Cumulative % 1.5 3.6 6.0 8.4 11.7 16.9 25.3 42.4 66.5 100.0