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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: http://repec.sowi.unibe.ch/files/wp15/jann-2016-lorenz.pdf
    File Function: Revised version, 2016
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    References listed on IDEAS

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    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 09 Jul 2012.
    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 Universit├Ąt Hannover, Wirtschaftswissenschaftliche Fakult├Ąt.
    2. John Gibson, 2018. "The Micro-Geography of Academic Research:How Distinctive is Economics?," Working Papers in Economics 18/03, University of Waikato.
    3. repec:eee:enepol:v:106:y:2017:i:c:p:255-265 is not listed on IDEAS

    More about this item

    Keywords

    Stata; Lorenz curve; concentration curve; inequality; income distribution; wealth distribution; graphics; survey estimation;

    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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