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Estimating Lorenz and concentration curves in Stata

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  • Ben Jann

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Abstract

Lorenz and concentration curves are widely used tools in inequality research. In this paper I present a new Stata command called -lorenz- that estimates Lorenz and concentration curves from individual-level data and, optionally, displays the results in a graph. The -lorenz- command supports relative as well as generalized, absolute, unnormalized, or custom-normalized Lorenz or concentration curves, and provides tools for computing contrasts between different subpopulations or outcome variables. Variance estimation for complex samples is fully supported.

Suggested Citation

  • Ben Jann, 2016. "Estimating Lorenz and concentration curves in Stata," University of Bern Social Sciences Working Papers 15, University of Bern, Department of Social Sciences, revised 27 Oct 2016.
  • Handle: RePEc:bss:wpaper:15
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    File URL: https://boris.unibe.ch/81525/8/jann-2016-lorenz.pdf
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    References listed on IDEAS

    as
    1. Moyes, Patrick, 1987. "A new concept of Lorenz domination," Economics Letters, Elsevier, vol. 23(2), pages 203-207.
    2. Shorrocks, Anthony F, 1983. "Ranking Income Distributions," Economica, London School of Economics and Political Science, vol. 50(197), pages 3-17, February.
    3. Joao Pedro Azevedo & Samuel Franco, 2006. "ALORENZ: Stata module to produce Pen's Parade, Lorenz and Generalised Lorenz curve," Statistical Software Components S456749, Boston College Department of Economics, revised 29 Jan 2021.
    4. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    5. Philippe Van Kerm & Stephen P. Jenkins, 2001. "Generalized Lorenz curves and related graphs: an update for Stata 7," Stata Journal, StataCorp LP, vol. 1(1), pages 107-112, November.
    6. Bishop, John A & Chow, K Victor & Formby, John P, 1994. "Testing for Marginal Changes in Income Distributions with Lorenz and Concentration Curves," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 35(2), pages 479-488, May.
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    Cited by:

    1. Engelhardt, Carina & Wagener, Andreas, 2017. "The income distribution of voters: a case study from Germany," Hannover Economic Papers (HEP) dp-586, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    2. Quang Tran, Tuyen & Viet Nguyen, Thanh, 2018. "Forestland and household welfares in North Central Provinces, Vietnam," MPRA Paper 88823, University Library of Munich, Germany, revised 17 Feb 2018.
    3. John Gibson, 2018. "The Micro-Geography of Academic Research:How Distinctive is Economics?," Working Papers in Economics 18/03, University of Waikato.
    4. Grover, David & Daniels, Benjamin, 2017. "Social equity issues in the distribution of feed-in tariff policy benefits: A cross sectional analysis from England and Wales using spatial census and policy data," Energy Policy, Elsevier, vol. 106(C), pages 255-265.
    5. Paramjeet Chawla, 2019. "Horizontal Inequality in Urban India: A Human Development Perspective," Proceedings of the 15th International RAIS Conference, November 6-7, 2019 023PC, Research Association for Interdisciplinary Studies.
    6. Nguyen, Thanh Viet & Tran, Tuyen Quang, 2018. "Forestland and rural household livelihoods in the North Central Provinces, Vietnam," Land Use Policy, Elsevier, vol. 79(C), pages 10-19.
    7. Karl Taeuscher, 2019. "Uncertainty kills the long tail: demand concentration in peer-to-peer marketplaces," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(4), pages 649-660, December.

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    More about this item

    Keywords

    Stata; Lorenz curve; concentration curve; inequality; income distribution; wealth distribution; graphics; survey estimation;
    All these keywords.

    JEL classification:

    • C87 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Econometric Software
    • 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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