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Parametric Lorenz curves based on the beta system of distributions

Abstract: Some families of Lorenz curves only approximate specific segments of the income distribution. This potential limitation motivates the consideration of more flexible models, which depart from a convenient form of the Lorenz curve. We begin with a Lorenz curve from which we generate a more flexible family of Lorenz curves through two new parameters. We explore the main properties of this family, including the Lorenz ordering, inequality measures, and Leimkhuler curves. An empirical application with US data suggests that the proposed models fit income data accurately.

 Authorship: Gómez–Déniz E., Sarabia J.M., Jordá V.,

 Fuente: Communications in Statistics. Theory and Methods, 2022, 51(23), 8371-8390

Publisher: Taylor and Francis Ltd.

 Year of publication: 2022

No. of pages: 20

Publication type: Article

 DOI: 10.1080/03610926.2021.1894449

ISSN: 0361-0926,1532-415X

 Spanish project: ECO2017-85577-P

Publication Url: https://doi.org/10.1080/03610926.2021.1894449

Authorship

GÓMEZ DÉNIZ, EMILIO

SARABIA, JOSÉ MARÍA