Home About Latest Browse RSS Advanced Search

Board of Governors of the Federal Reserve System (US)
Finance and Economics Discussion Series
Comparing Cross-Country Estimates of Lorenz Curves Using a Dirichlet Distribution Across Estimators and Datasets
Andrew C. Chang
Phillip Li
Shawn M. Martin
Abstract

Chotikapanich and Griffiths (2002) introduced the Dirichlet distribution to the estimation of Lorenz curves. This distribution naturally accommodates the proportional nature of income share data and the dependence structure between the shares. Chotikapanich and Griffiths (2002) fit a family of five Lorenz curves to one year of Swedish and Brazilian income share data using unconstrained maximum likelihood and unconstrained non-linear least squares. We attempt to replicate the authors' results and extend their analyses using both constrained estimation techniques and five additional years of data. We successfully replicate a majority of the authors' results and find that some of their main qualitative conclusions also hold using our constrained estimators and additional data.


Download Full text
Cite this item
Andrew C. Chang & Phillip Li & Shawn M. Martin, Comparing Cross-Country Estimates of Lorenz Curves Using a Dirichlet Distribution Across Estimators and Datasets, Board of Governors of the Federal Reserve System (US), Finance and Economics Discussion Series 2017-062, Jun 2017.
More from this series
JEL Classification:
Subject headings:
Keywords: Constrained Estimation; Dirichlet; Dirichlet Distribution; Gini Coefficient; Income Distribution; Lorenz Curve; Maximum Likelihood; Non-linear Least Squares; Replication; Share Data
DOI: 10.17016/FEDS.2017.062
For corrections, contact Ryan Wolfslayer ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal