Sankhya: The Indian Journal of Statistics

1999, Volume 61, Series B, Pt. 3, pp. 514--517

ON THE LORENZ ORDER WITHIN PARAMETRIC FAMILIES OF INCOME DISTRIBUTIONS

By

CHRISTIAN KLEIBER, Universität Dortmund, Germany

SUMMARY. This paper provides a unified approach to Lorenz ordering within almost all commonly considered families of income distributions. For the most general model, the four-parameter generalized beta of the second kind (GB2), I derive a new sufficient condition. Unlike previous results, this criterion is empirically relevant; I find that inequality was lower in Germany than in the US in 1985 when both empirical distributions are approximated by the GB2.

AMS (1991) subject classification. Primary 60E10, 60E15; secondary 62P20.

Key words and phrases. Income inequality, Lorenz order, parametric models, stochastic orders.

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