Fitting Parametric Lorenz Curves to Grouped Income Distributions--A Critical Note
The paper surveys various parametric Lorenz curves to be fitted to ground income data in order to obtain an estimate for the Gini measure of inequality. The curves are fitted to 16 sets of empirical income data. The results are compared to the results of the purely nonparametric method (due to Gastwirth) of computing lower and upper bounds for the Gini measure. It is shown that most of the parametric curves are unreliable in that they may produce estimates outside the bounds.
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Volume (Year): 19 (1994)
Issue (Month): 3 ()
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