A simple method for estimating the Lorenz curve

Abstract Given many popular functional forms for the Lorenz curve do not have a closed-form expression for the Gini index and no study has utilized the observed Gini index to estimate parameter(s) associated with the corresponding parametric functional form, a simple method for estimating the Lorenz...

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Autores principales:	Thitithep Sitthiyot, Kanyarat Holasut
Formato:	article
Lenguaje:	EN
Publicado:	Springer Nature 2021
Materias:	History of scholarship and learning. The humanities AZ20-999 Social Sciences H
Acceso en línea:	https://doaj.org/article/4c39fcfd4afc4d51881509728817b028
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spelling	oai:doaj.org-article:4c39fcfd4afc4d51881509728817b0282021-11-21T12:28:26ZA simple method for estimating the Lorenz curve10.1057/s41599-021-00948-x2662-9992https://doaj.org/article/4c39fcfd4afc4d51881509728817b0282021-11-01T00:00:00Zhttps://doi.org/10.1057/s41599-021-00948-xhttps://doaj.org/toc/2662-9992Abstract Given many popular functional forms for the Lorenz curve do not have a closed-form expression for the Gini index and no study has utilized the observed Gini index to estimate parameter(s) associated with the corresponding parametric functional form, a simple method for estimating the Lorenz curve is introduced. It utilizes three indicators, namely, the Gini index and the income shares of the bottom and the top in order to calculate the values of parameters associated with the specified functional form which has a closed-form expression for the Gini index. No error minimization technique is required in order to estimate the Lorenz curve. The data on the Gini index and the income shares of four countries that have a different level of income inequality, economic, sociological, and regional backgrounds from the United Nations University-World Income Inequality Database are used to illustrate how the simple method works. The overall results indicate that the estimated Lorenz curves fit the actual observations practically well. This simple method could be useful in the situation where the availability of data on income distribution is low. However, if more data on income distribution are available, this study shows that the specified functional form could be used to directly estimate the Lorenz curve. Moreover, the estimated values of the Gini index calculated based on the specified functional form are virtually identical to their actual observations.Thitithep SitthiyotKanyarat HolasutSpringer NaturearticleHistory of scholarship and learning. The humanitiesAZ20-999Social SciencesHENHumanities & Social Sciences Communications, Vol 8, Iss 1, Pp 1-9 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	History of scholarship and learning. The humanities AZ20-999 Social Sciences H
spellingShingle	History of scholarship and learning. The humanities AZ20-999 Social Sciences H Thitithep Sitthiyot Kanyarat Holasut A simple method for estimating the Lorenz curve
description	Abstract Given many popular functional forms for the Lorenz curve do not have a closed-form expression for the Gini index and no study has utilized the observed Gini index to estimate parameter(s) associated with the corresponding parametric functional form, a simple method for estimating the Lorenz curve is introduced. It utilizes three indicators, namely, the Gini index and the income shares of the bottom and the top in order to calculate the values of parameters associated with the specified functional form which has a closed-form expression for the Gini index. No error minimization technique is required in order to estimate the Lorenz curve. The data on the Gini index and the income shares of four countries that have a different level of income inequality, economic, sociological, and regional backgrounds from the United Nations University-World Income Inequality Database are used to illustrate how the simple method works. The overall results indicate that the estimated Lorenz curves fit the actual observations practically well. This simple method could be useful in the situation where the availability of data on income distribution is low. However, if more data on income distribution are available, this study shows that the specified functional form could be used to directly estimate the Lorenz curve. Moreover, the estimated values of the Gini index calculated based on the specified functional form are virtually identical to their actual observations.
format	article
author	Thitithep Sitthiyot Kanyarat Holasut
author_facet	Thitithep Sitthiyot Kanyarat Holasut
author_sort	Thitithep Sitthiyot
title	A simple method for estimating the Lorenz curve
title_short	A simple method for estimating the Lorenz curve
title_full	A simple method for estimating the Lorenz curve
title_fullStr	A simple method for estimating the Lorenz curve
title_full_unstemmed	A simple method for estimating the Lorenz curve
title_sort	simple method for estimating the lorenz curve
publisher	Springer Nature
publishDate	2021
url	https://doaj.org/article/4c39fcfd4afc4d51881509728817b028
work_keys_str_mv	AT thitithepsitthiyot asimplemethodforestimatingthelorenzcurve AT kanyaratholasut asimplemethodforestimatingthelorenzcurve AT thitithepsitthiyot simplemethodforestimatingthelorenzcurve AT kanyaratholasut simplemethodforestimatingthelorenzcurve
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A simple method for estimating the Lorenz curve

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