A Pricewise Method for Estimating the Lorenz Curve

ZuXiang Wang and Russell Smyth

No 05-15, Monash Economics Working Papers from Monash University, Department of Economics

Abstract: We propose a piecewise method to estimate the Lorenz curve for grouped income data. Our illustrative application shows that the method can produce more plausible density estimates when the income distribution data has multiple peaks and the Lorenz curve cannot be modeled satisfactorily over the entire interval with a single Lorenz curve model.

Pages: 11 pages
Date: 2015-01
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