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Comparison of concentration for several families of income distributions

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  • Belzunce, Félix
  • Pinar, José F.
  • Ruiz, José M.
  • Sordo, Miguel A.

Abstract

In this paper, we consider the comparison of parametric families of income distributions in terms of inequality and relative deprivation, which are two important aspects for understanding the concentration of incomes in a population. Based on inequalities of their parameters, we give sufficient, and in some cases necessary, conditions to show when a parametric model exhibits more deprivation and inequality than another parametric model. These comparisons are carried out in terms of the starshaped, expected proportional shortfall, and Lorenz orders.

Suggested Citation

  • Belzunce, Félix & Pinar, José F. & Ruiz, José M. & Sordo, Miguel A., 2013. "Comparison of concentration for several families of income distributions," Statistics & Probability Letters, Elsevier, vol. 83(4), pages 1036-1045.
    • Handle: RePEc:eee:stapro:v:83:y:2013:i:4:p:1036-1045
    DOI: 10.1016/j.spl.2012.12.025
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    References listed on IDEAS

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    1. Satya R. Chakravarty & Patrick Moyes, 2003. "Individual welfare, social deprivation and income taxation," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 21(4), pages 843-869, June.
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    6. Kleiber, Christian, 1996. "Dagum vs. Singh-Maddala income distributions," Economics Letters, Elsevier, vol. 53(3), pages 265-268, December.
    7. Wilfling, Bernd, 1996. "Lorenz ordering of generalized beta-II income distributions," Journal of Econometrics, Elsevier, vol. 71(1-2), pages 381-388.
    8. Sarabia, Jose Maria & Castillo, Enrique & Slottje, Daniel J., 2002. "Lorenz ordering between McDonald's generalized functions of the income size distribution," Economics Letters, Elsevier, vol. 75(2), pages 265-270, April.
    9. Wilfling, Bernd & Kramer, Walter, 1993. "The Lorenz-ordering of Singh-Maddala income distributions," Economics Letters, Elsevier, vol. 43(1), pages 53-57.
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    Cited by:

    1. Félix Belzunce & Carolina Martínez-Riquelme & José M. Ruiz & Miguel A. Sordo, 2017. "On the Comparison of Relative Spacings with Applications," Methodology and Computing in Applied Probability, Springer, vol. 19(2), pages 357-376, June.
    2. Zahra Behdani & Gholam Reza Mohtashami Borzadaran & Bahram Sadeghpour Gildeh, 2020. "Some properties of double truncated distributions and their application in view of income inequality," Computational Statistics, Springer, vol. 35(1), pages 359-378, March.
    3. Idir Arab & Paulo Eduardo Oliveira & Tilo Wiklund, 2021. "Convex transform order of Beta distributions with some consequences," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 75(3), pages 238-256, August.
    4. Masato Okamoto, 2022. "Lorenz and Polarization Orderings of the Double-Pareto Lognormal Distribution and Other Size Distributions," Sankhya B: The Indian Journal of Statistics, Springer;Indian Statistical Institute, vol. 84(2), pages 548-574, November.
    5. Lando, Tommaso & Bertoli-Barsotti, Lucio, 2020. "Second-order stochastic dominance for decomposable multiparametric families with applications to order statistics," Statistics & Probability Letters, Elsevier, vol. 159(C).
    6. Antonia Castaño-Martínez & Gema Pigueiras & Miguel A. Sordo, 2021. "On the Increasing Convex Order of Relative Spacings of Order Statistics," Mathematics, MDPI, vol. 9(6), pages 1-12, March.

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