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New classes of Lorenz curves by maximizing Tsallis entropy under mean and Gini equality and inequality constraints

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  • Preda, Vasile
  • Dedu, Silvia
  • Gheorghe, Carmen

Abstract

In this paper, by using the entropy maximization principle with Tsallis entropy, new distribution families for modeling the income distribution are derived. Also, new classes of Lorenz curves are obtained by applying the entropy maximization principle with Tsallis entropy, under mean and Gini index equality and inequality constraints.

Suggested Citation

  • Preda, Vasile & Dedu, Silvia & Gheorghe, Carmen, 2015. "New classes of Lorenz curves by maximizing Tsallis entropy under mean and Gini equality and inequality constraints," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 436(C), pages 925-932.
    • Handle: RePEc:eee:phsmap:v:436:y:2015:i:c:p:925-932
    DOI: 10.1016/j.physa.2015.05.092
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    References listed on IDEAS

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    1. Constantino Tsallis & Celia Anteneodo & Lisa Borland & Roberto Osorio, 2003. "Nonextensive statistical mechanics and economics," Papers cond-mat/0301307, arXiv.org.
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    9. Preda, Vasile & Dedu, Silvia & Sheraz, Muhammad, 2014. "New measure selection for Hunt–Devolder semi-Markov regime switching interest rate models," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 407(C), pages 350-359.
    10. Tsallis, Constantino & Anteneodo, Celia & Borland, Lisa & Osorio, Roberto, 2003. "Nonextensive statistical mechanics and economics," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 324(1), pages 89-100.
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    Cited by:

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    2. Sfetcu, Răzvan-Cornel, 2016. "Tsallis and Rényi divergences of generalized Jacobi polynomials," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 460(C), pages 131-138.
    3. Moretto, Enrico & Pasquali, Sara & Trivellato, Barbara, 2016. "Option pricing under deformed Gaussian distributions," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 446(C), pages 246-263.
    4. Khosravi Tanak, A. & Mohtashami Borzadaran, G.R. & Ahmadi, J., 2017. "Maximum Tsallis entropy with generalized Gini and Gini mean difference indices constraints," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 471(C), pages 554-560.
    5. Xiaozhuan Gao & Yong Deng, 2019. "The generalization negation of probability distribution and its application in target recognition based on sensor fusion," International Journal of Distributed Sensor Networks, , vol. 15(5), pages 15501477198, May.
    6. Khosravi Tanak, A. & Mohtashami Borzadaran, G.R. & Ahmadi, Jafar, 2018. "New functional forms of Lorenz curves by maximizing Tsallis entropy of income share function under the constraint on generalized Gini index," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 511(C), pages 280-288.
    7. Florentin ŞERBAN & Anca-Teodora ŞERBAN-OPRESCU & George-Laurenţiu ŞERBAN-OPRESCU, 2017. "Appraisal of Scientific Research in European Countries. An Entropy-Based Analysis," ECONOMIC COMPUTATION AND ECONOMIC CYBERNETICS STUDIES AND RESEARCH, Faculty of Economic Cybernetics, Statistics and Informatics, vol. 51(1), pages 103-116.
    8. Sunoj, S.M. & Krishnan, Aswathy S. & Sankaran, P.G., 2018. "A quantile-based study of cumulative residual Tsallis entropy measures," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 494(C), pages 410-421.
    9. Răzvan-Cornel Sfetcu & Sorina-Cezarina Sfetcu & Vasile Preda, 2021. "Ordering Awad–Varma Entropy and Applications to Some Stochastic Models," Mathematics, MDPI, vol. 9(3), pages 1-15, January.

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