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On One Parameter Functional Forms for Lorenz Curves

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  • Paul D. Thistle
  • John P. Formby

Abstract

This paper shows that using a one-parameter functional form for the Lorenz curve is equivalent to ranking income distributions based on their Gini indices. Irrespective of the underlying data, the fitted Lorenz curves can never intersect. Circu mstances in which one-parameter Lorenz curves can safely be specified are identified and their policy relevance discussed.

Suggested Citation

  • Paul D. Thistle & John P. Formby, 1988. "On One Parameter Functional Forms for Lorenz Curves," Eastern Economic Journal, Eastern Economic Association, vol. 14(1), pages 81-85, Jan-Mar.
    • Handle: RePEc:eej:eeconj:v:14:y:1988:i:1:p:81-85
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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume14/V14N1P81_85.pdf
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    References listed on IDEAS

    as
    1. Gupta, Manash Ranjan, 1984. "Functional Form for Estimating the Lorenz Curve," Econometrica, Econometric Society, vol. 52(5), pages 1313-1314, September.
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    4. Browning, Edgar K & Johnson, William R, 1984. "The Trade-Off between Equality and Efficiency," Journal of Political Economy, University of Chicago Press, vol. 92(2), pages 175-203, April.
    5. Suits, Daniel B, 1977. "Measurement of Tax Progressivity," American Economic Review, American Economic Association, vol. 67(4), pages 747-752, September.
    6. repec:bla:econom:v:50:y:1983:i:197:p:3-17 is not listed on IDEAS
    7. Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931.
    8. Lambert, Peter J, 1985. "On the Redistributive Effect of Taxes and Benefits," Scottish Journal of Political Economy, Scottish Economic Society, vol. 32(1), pages 39-54, February.
    9. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
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    Cited by:

    1. Yu Hsing, 1991. "Unemployment and the GNP Gap: Okun's Law Revisited," Eastern Economic Journal, Eastern Economic Association, vol. 17(4), pages 409-416, Oct-Dec.
    2. Louis Mesnard, 2022. "About some difficulties with the functional forms of Lorenz curves," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 20(4), pages 939-950, December.

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