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A Comparison of Alternative Functional Forms For Parametric Estimation of the Lorenz Curve

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  • Kwang Soo Cheong

    (Department of Economics, University of Hawaii at Manoa)

Abstract

Using U.S. income data, we evaluate several functional forms for the Lorenz curve. On the basis of the goodness of fit, estimated income shares and Gini coefficients, the form proposed by Kakwani (1980) is found to be overall superior to the other forms.

Suggested Citation

  • Kwang Soo Cheong, 1999. "A Comparison of Alternative Functional Forms For Parametric Estimation of the Lorenz Curve," Working Papers 199902, University of Hawaii at Manoa, Department of Economics.
    • Handle: RePEc:hai:wpaper:199902
    as

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    File URL: http://www.economics.hawaii.edu/research/workingpapers/992.pdf
    File Function: First version, 1999
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    References listed on IDEAS

    as
    1. Kakwani, N C & Podder, N, 1973. "On the Estimation of Lorenz Curves from Grouped Observations," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(2), pages 278-292, June.
    2. Guano Hua Wan, 1999. "An empirical assessment on alternative functional forms of the Lorenz curve," Applied Economics Letters, Taylor & Francis Journals, vol. 6(9), pages 597-599.
    3. Ortega, P, et al, 1991. "A New Functional Form for Estimating Lorenz Curves," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 37(4), pages 447-452, December.
    4. Ogwang, Tomson & Gouranga Rao, U. L., 1996. "A new functional form for approximating the Lorenz curve," Economics Letters, Elsevier, vol. 52(1), pages 21-29, July.
    5. P. Ortega & G. Martín & A. Fernández & M. Ladoux & A. García, 1991. "A New Functional Form For Estimating Lorenz Curves," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 37(4), pages 447-452, December.
    6. Gupta, Manash Ranjan, 1984. "Functional Form for Estimating the Lorenz Curve," Econometrica, Econometric Society, vol. 52(5), pages 1313-1314, September.
    7. Rasche, R H, et al, 1980. "Functional Forms for Estimating the Lorenz Curve: Comment," Econometrica, Econometric Society, vol. 48(4), pages 1061-1062, May.
    8. Basmann, R. L. & Hayes, K. J. & Slottje, D. J. & Johnson, J. D., 1990. "A general functional form for approximating the Lorenz curve," Journal of Econometrics, Elsevier, vol. 43(1-2), pages 77-90.
    9. Kakwani, Nanak C & Podder, N, 1976. "Efficient Estimation of the Lorenz Curve and Associated Inequality Measures from Grouped Observations," Econometrica, Econometric Society, vol. 44(1), pages 137-148, January.
    10. Chotikapanich, Duangkamon, 1993. "A comparison of alternative functional forms for the Lorenz curve," Economics Letters, Elsevier, vol. 41(2), pages 129-138.
    11. Kakwani, Nanak, 1980. "On a Class of Poverty Measures," Econometrica, Econometric Society, vol. 48(2), pages 437-446, March.
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    Cited by:

    1. Kwang Soo Cheong, 1999. "Economic Crisis and Income Inequality in Korea," Working Papers 199906, University of Hawaii at Manoa, Department of Economics.

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    More about this item

    Keywords

    Income inequality; the Lorenz curve and the Gini coeffcient;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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