This paper introduces a simple method for estimating the Lorenz curve using three indicators: the Gini index and the income shares of the bottom and top populations. The method calculates parameters for a specified functional form (a weighted average of an exponential function and a Pareto distribution) with a closed-form expression for the Gini index. The approach avoids error minimization techniques. Data from four countries with varying income inequality levels from the UNU-WIID database illustrate the method's effectiveness, showing that the estimated Lorenz curves closely fit actual observations. The method is particularly useful with limited income distribution data.
Publisher
Humanities and Social Sciences Communications
Published On
Authors
Thitithep Sitthiyot, Kanyarat Holasut
Tags
Lorenz curve
Gini index
income distribution
Pareto distribution
income inequality
data analysis
economic indicators
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