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Generating Ordered Families of Lorenz Curves by Strongly Unimodal Distributions |
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| Authors: | Barry C Arnold Christopher A Robertson Patrick L Brockett Boo-Yau Shu |
| Institution: | 1. Department of Statistics , University of California , Riverside , CA , 92521;2. Department of Finance, IC Institute and Applied Research Laboratories , University of Texas , Austin , TX , 78712-1179;3. Fu-Jen Catholic University , Taipei , Taiwan , 10020 , Republic of China |
| Abstract: | From any strongly unimodal density on the real line, it is possible to generate a one-parameter family of Lorenz curves. The resulting families of Lorenz curves are Lorenz ordered with respect to the indexing parameter. Symmetry of the unimodal density results in the generation of symmetric Lorenz curves. A related characterization of the normal distribution is presented. |
| Keywords: | Income distributions Stochastic dominance Lorenz ordering |