Stata module to estimate lorenz and concentration curves. Editor with autoit now also running from start to cursor position. Estimating lorenz and concentration curves in stata. Stata module to estimate and display lorenz curves and concentration curves, statistical software components s4583, boston college department of economics, revised 15 jun 2018.
This module should be installed from within stata by typing ssc install lorenz. Stata module to estimate and display lorenz curves. Creating a lorenz curve from excel university of washington. But for any stata 8, those commands are no longer state of the art, about a decade behind the stata times. In this paper i present a new stata command called lorenz that estimates lorenz and. Estimating the empirical lorenz curve and gini coefficient in.
For a population ordered in ascending order of x, a graph of glp against p plots the cumulative total of x divided by population size, against cumulative. Permission is granted to copy, distribute andor modify this document under the terms of the gnu free documentation license, version 1. The generalized lorenz curve is the lorenz curve scaled up at each point by mean income, and is often used for welfare dominance comparisons cowell 1995, lambert 1993. The glcurve command is updated to a stata 7 version, glcurve7, which is described and illustrated. The decomposition is performed using the shapley value. Our interest lies in studying the concentration or distribution of a feature of each of the n observations across the n members of the population. Whether youve loved the book or not, if you give your honest and detailed thoughts then people will find new books that are right for them. Hello there, actually i am trying to compare lorenz curves 3 different incomes and i want to construct the line of 45 grades. All you have to do is to figure out which of the billions packages available on cran ok. Suppose that n observations patient visits are dispersed among n experimental units physicians. It is frequently the case that the measure of interest used to rank experimental units when estimating the empirical.
Van kerm and jenkins, 2001, svylorenz jenkins, 2006, clorenz araar, 2005, alorenz azevedo and franco, 2006 and lorenz. For this latter reason, i mirrored the lorenz curve on the diagonal line which results in a more intuitive form, if you ask me. In economics, the lorenz curve is a graphical representation of the distribution of income or of wealth. The step from lorenz curve to distribution function is more difficult than the step from distribution function to lorenz curve. Estimating the empirical lorenz curve and gini coefficient. While the quantile versions of the lorenz curve are not always convex, they are so for common distributions used to model incomes, as explained in section 5. Fx, glcurve draws its generalised lorenz curve andor generates two new variables containing the generalised lorenz ordinates for x, i. A lorenz curve always starts at 0,0 and ends at 1,1. Relative as well as generalized, absolute, unnormalized, or customnormalized lorenz or concentration curves are supported, and tools for computing contrasts between different subpopulations or outcome variables are provided. Cumulative cumulative plot or visualizing a lorenz curve.
The closer the lorenz curve lies to the diagonal, the more equal income is distributed. I could find it under chart wizard in another version. The scsomersd package is downloadable from ssc, and calculates the gini coefficient in one line, as. The gini coefficient, g, is twice the area between the lorenz curve and the line of perfect inequality, and ranges between 0 and 1. Fx, glcurve either draws its generalised lorenz curve or generates two new variables containing the generalised lorenz ordinates for x, i. For a population ordered in ascending order of x, a graph of glp against p plots the cumulative total of x divided by population. Modelling lorenz curve johan fellman1,2 abstract there has been a large number of studies in which the scientists have built models for income distributions.
For future reference, you might want to use scsomersd rather than somersd to calculate the gini coefficient with confidence limits. Fieldwork data may be used but it is more common to use secondary sources e. The similarity between the square of the coecient of. If you type, in stata, findit lorenz then you will find a choice of programs to plot a lorenz curve. If i want to calculate the gini coefficient and lorenz curve how should i proceed. Stata module to plot lorenz curve type findit glcurve or ssc install glcurve in stata prompt to install. A summary and further research problems are given in section 6. For example, the stata commands 1 glcurve jenkins and van kerm, 2004. The lorenz curve is not defined if the mean of the probability distribution is zero or infinite. Estimation of gini coefficients using lorenz curves johan fellman1,2 abstract primary income data yields the most exact estimates of the gini coefficient. Sort order in graph box, over by previous by thread. We represent the number of observations for each experimental unit as m k, k 1, n. I have to construct a single graph whit lorenz curve of varname, lorenz curve of varname where population are ordered in descending order of varname and a 45 line. The lorenz curve is a graphical method used to display the concentration of activities within an area e.
Jul 20, 2008 the lorenz curve is a graphical tool that is widely used to characterize the concentration of a measure in a population, such as wealth. I found a way to quickly visualize the lorenz curve with ggplot2, resulting in a more aesthetic and easiertointerpret graphic. Stata module to derive generalised lorenz curve ordinates, statistical software components s366302, boston college department of economics, revised 24 jun 2008. Comparisons of pairs of distributions and dominance checks can be undertaken by using the by with or without the split options. Investigaciones economicas vol 31 1 fundacion sepi. Lorenz in 1905 for representing inequality of the wealth distribution the curve is a graph showing the proportion of overall income or wealth assumed by the bottom x% of the people, although this is not rigorously true for a finite population see below. Is it possible that there isnt such option on this version. Stata, lorenz, lorenz curve, concentration curve, inequality, income distribution, wealth distribution, graphics. A lorenz curve plots the cumulative percentages of total income received against the cumulative number of recipients, starting with the poorest individual or household. However, lorenz curves representing discontinuous functions can be constructed as the limit of lorenz curves of. For example, the algorithm in the widely used stata module glcurve is written for microdata with nonrepetitive welfare measures but not for. Nov 18, 2010 i presume that you want to produce a lorenz curve.
Estimation of gini coefficients using lorenz curves. Hi you have given the answer to the calculation of gini index using spss. The lorenz curve for a probability distribution is a continuous function. Estimating lorenz and concentration curves in stata ben jann institute of sociology. Lorenz curve 0 10 20 30 40 50 60 70 80 90 100 0 1020 3040 5060 708090 100 cumulative % population cumulative % income. Alternatively glcurve with the lorenz, atip or rtip option can be used directly to draw the related lorenz, concentration and tip curves. The generalized lorenz curve glp is the lorenz curve scaled up at each p by mean varname. Jun 15, 2018 lorenz estimates lorenz and concentration curves from individuallevel data and, optionally, displays the results in a graph. To construct the loren curve where population are ordered in descending order of varname i typed. In this paper i present a new stata command called lorenz that estimates lorenz and concentration. Pdf the estimation of the lorenz curve and gini index. Oct 29, 2012 how to prepare 2019 form 1040 income tax return with child tax credit, additional child tax credit duration. The command dfgts decomposes the allevation of fgt poverty by income components and provides standard errors on elements of the decompositions. Reza, what you see are the generalized lorenz curves.
I would like to draw a lorenz curve and calculate a gini index with the objective to determine how much parasites does the top 20% most infected hosts support here is my data set. I would like to draw a lorenz curve and calculate a gini index with the objective to determine how much parasites does the top 20% most infected hosts support. Stata module to estimate and display lorenz curves and. Other readers will always be interested in your opinion of the books youve read. A copy of the license is included in the section entitled gnu free documentation license. Hello, is it possible to construct a lorenz curve of a varname computed whit a population ordered in descending order of varname. You can do anything pretty easily with r, for instance, calculate concentration indexes such as the gini index or display the lorenz curve dedicated to my students although i did not explain it during my lectures, calculating a gini index or displaying the lorenz curve can be done very easily with r.
If it isnt, change the order of the two source data columns, the 1st becoming 2nd, and the 2nd becoming 1st. The graphics commands you are using are for stata 7. The gini index measures the area between the lorenz curve and a hypothetical line of absolute equality, expressed as a percentage of the maximum area under the line. Subtract the previous two columns from each otherthe. But for any stata 8, those commands are no longer state of the art, about a.
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