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A multivariate extension of the Lorenz curve based on copulas and a related multivariate Gini coefficient

Author

Listed:
  • Oliver Grothe

    (Karlsruher Institut für Technologie (KIT))

  • Fabian Kächele

    (Karlsruher Institut für Technologie (KIT))

  • Friedrich Schmid

    (Universität zu Köln)

Abstract

We propose an extension of the univariate Lorenz curve and of the Gini coefficient to the multivariate case, i.e., to simultaneously measure inequality in more than one variable. Our extensions are based on copulas and measure inequality stemming from inequality in each single variable as well as inequality stemming from the dependence structure of the variables. We derive simple nonparametric estimators for both instruments and exemplary apply them to data of individual income and wealth for various countries.

Suggested Citation

  • Oliver Grothe & Fabian Kächele & Friedrich Schmid, 2022. "A multivariate extension of the Lorenz curve based on copulas and a related multivariate Gini coefficient," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 20(3), pages 727-748, September.
    • Handle: RePEc:spr:joecin:v:20:y:2022:i:3:d:10.1007_s10888-022-09533-x
    DOI: 10.1007/s10888-022-09533-x
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    Cited by:

    1. Anna Stelzer, 2023. "Monetary policy and the joint distribution of income and wealth: The heterogeneous case of the euro area," Papers 2304.14264, arXiv.org.

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