On a property of Lorenz curves with monotone elasticity and its application to the study of inequality by using tax data
The Lorenz curve is the most widely used graphical tool for describing and comparing inequality of income distributions. In this paper, we show that the elasticity of this curve is an indicator of the effect, in terms of inequality, of a truncation of the income distribution. As an application, we c...
| Authors: | ; ; ; |
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| Format: | Article |
| Publication date: | 2017 |
| Country: | España |
| Institution: | Universitat Autònoma de Barcelona |
| Repository: | Dipòsit Digital de Documents de la UAB |
| Language: | English |
| OAI Identifier: | oai:ddd.uab.cat:176144 |
| Online Access: | https://ddd.uab.cat/record/176144 https://dx.doi.org/urn:doi:10.2436/20.8080.02.50 |
| Access Level: | Open access |
| Keyword: | Lorenz curve Tax data Truncation Inequality |
| Summary: | The Lorenz curve is the most widely used graphical tool for describing and comparing inequality of income distributions. In this paper, we show that the elasticity of this curve is an indicator of the effect, in terms of inequality, of a truncation of the income distribution. As an application, we consider tax returns as equivalent to the truncation from below of a hypothetical income distribution. Then, we replace this hypothetical distribution by the income distribution obtained from a general household survey and use the dual Lorenz curve to anticipate this effect. |
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