A skewed truncated Cauchy distribution with applications in economics
Skewed symmetric distributions have attracted a great deal of attention in the last few years. One of them, the skewed Cauchy distribution suffers from limited applicability because of the lack of finite moments. This article proposes an alternative to the skewed Cauchy distribution, which we refer to as skewed truncated Cauchy distribution. It is defined by the pdf f(x) = 2g(x)G(γx), where g(·) and G(·) are taken, respectively, to be the pdf and the cdf of a truncated Cauchy distribution. This distribution possesses finite moments of all orders and could therefore be a better model for certain practical situations. One such situation in economics is discussed. This article also derives various properties of this distribution, including its moments.
Volume (Year): 14 (2007)
Issue (Month): 13 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAEL20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAEL20|
When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:14:y:2007:i:13:p:957-961. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst)
If references are entirely missing, you can add them using this form.