Article ID Journal Published Year Pages File Type
5058621 Economics Letters 2015 5 Pages PDF
Abstract

•We analyze the curvature structure of a bi-parametric Lorenz curve.•We build a series of single-parameter Lorenz curves with varied curvatures.•We develop a hybrid method to estimate the Lorenz curve.•The hybrid method is shown to work well with US grouped data.

We first suggest a bi-parametric Lorenz curve and then analyze the curvature structure of the function. We then build a series of single-parameter Lorenz curves with varied curvatures, which are special cases of the rational function. A hybrid method is then introduced for creating efficient functional models for the Lorenz curve from the single-parameter functional forms. Using grouped income distribution data for the United States, we find that our proposed models perform well.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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