An investigation of the performance of parametric functional forms for the Lorenz curve.

ABSTRACT: Given that an excellent performance of any parametric functional form for the Lorenz curve that is based on a single country case study and a limited range of distribution must be treated with great caution, this study investigates the performance of a single-parameter functional form proposed by Paul and Shankar (2020) who use income data of Australia to show that their functional form is superior to the other existing widely used functional forms considered in their study. By using both mathematical proof and empirical data of 40 countries around the world, this study demonstrates that Paul and Shankar (2020)'s functional form not only fails to fit the actual observations well but also is generally outperformed by the other popular functional forms considered in their study. Moreover, to

SUBMITTER: Sitthiyot T 

PROVIDER: S-EPMC10289384 | biostudies-literature | 2023

REPOSITORIES: biostudies-literature