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Efficient Estimation of the Lorenz Curve and Associated Inequality Measures from Grouped Observations

In: Modeling Income Distributions and Lorenz Curves

Author

Listed:
  • N. C. Kakwani
  • N. Podder

Abstract

This paper introduces a new coordinate system for the Lorenz curve. Particular attention is paid to a special case of wide empirical validity. Four alternative methods have been used to estimate the proposed Lorenz curve from the grouped data. The well known inequality measures are obtained as the function of the estimated parameters of the Lorenz curve. In addition the frequency distribution is derived from the equation of the Lorenz curve. An empirical illustration is presented using the data from the Australian Survey of Consumer Expenditure and Finances 1967–68.

Suggested Citation

  • N. C. Kakwani & N. Podder, 2008. "Efficient Estimation of the Lorenz Curve and Associated Inequality Measures from Grouped Observations," Economic Studies in Inequality, Social Exclusion, and Well-Being, in: Duangkamon Chotikapanich (ed.), Modeling Income Distributions and Lorenz Curves, chapter 4, pages 57-70, Springer.
    • Handle: RePEc:spr:esichp:978-0-387-72796-7_4
    DOI: 10.1007/978-0-387-72796-7_4
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    Cited by:

    1. Zoran Grubišić & Sandra Kamenković & Tijana Kaličanin, 2021. "Comparative Analysis of the Banking Sector Competitiveness in Serbia and Montenegro," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 10(1), pages 75-91.
    2. Paul Walter & Marcus Groß & Timo Schmid & Nikos Tzavidis, 2021. "Domain prediction with grouped income data," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 184(4), pages 1501-1523, October.
    3. Walter, Paul & Weimer, Katja, 2018. "Estimating poverty and inequality indicators using interval censored income data from the German microcensus," Discussion Papers 2018/10, Free University Berlin, School of Business & Economics.
    4. Dilanka S. Dedduwakumara & Luke A. Prendergast & Robert G. Staudte, 2021. "Some confidence intervals and insights for the proportion below the relative poverty line," SN Business & Economics, Springer, vol. 1(10), pages 1-22, October.

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