create_functional_form_lq: Prepares data for Lorenz Quadratic regression

In PIP-Technical-Team/wbpip: What the Package Does (One Line, Title Case)

Prepares data for Lorenz Quadratic regression

Description

Prepares data for regression of L(1-L) on (P^2-L), L(P-1) and (P-L). The last observation of (p,l), which by construction has the value (1, 1), is excluded since the functional form for the Lorenz curve already forces it to pass through the point (1, 1). Equation 15 in Lorenz Quadratic original paper.

Usage

create_functional_form_lq(welfare, population)

Arguments

welfare	numeric: Welfare vector from empirical Lorenz curve.
population	numeric: Population vector from empirical Lorenz curve.

Value

data.frame

References

Krause, M. 2013. "Corrigendum to Elliptical Lorenz curves". Journal of Econometrics 174 (1): 44.

Villasenor, J., B. C. Arnold. 1989. "Elliptical Lorenz curves". Journal of Econometrics 40 (2): 327-338.

PIP-Technical-Team/wbpip documentation built on Nov. 29, 2024, 6:57 a.m.