Abstract
We first suggest a bi-parametric Lorenz curve and then analyze the curvature structure of the function. We then build a series of single-parameter Lorenz curves with varied curvatures, which are special cases of the rational function. A hybrid method is then introduced for creating efficient functional models for the Lorenz curve from the single-parameter functional forms. Using grouped income distribution data for the United States, we find that our proposed models perform well.
Original language | English |
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Pages (from-to) | 59 - 63 |
Number of pages | 5 |
Journal | Economics Letters |
Volume | 133 |
DOIs | |
Publication status | Published - 2015 |