Resource title

Robust Lorenz curves : a semi-parametric approach

Resource image

image for OpenScout resource :: Robust Lorenz curves : a semi-parametric approach

Resource description

Lorenz curves and second-order dominance criteria are known to be sensitive to data contamination in the right tail of the distribution. We propose two ways of dealing with the problem: (1) Estimate Lorenz curves using parametric models for income distributions, and (2) Combine empirical estimation with a parametric (robust) estimation of the upper tail of the distribution using the Pareto model. Approach (2) is preferred because of its flexibility. Using simulations we show the dramatic effect of a few contaminated data on the Lorenz ranking and the performance of the robust approach (2). Statistical inference tools are also provided.

Resource author

Resource publisher

Resource publish date

Resource language


Resource content type


Resource resource URL

Resource license