alorenz derive and plot the Pen's Parade, Lorenz and Generalized Lorenz curve from the empirical distribution. In addition, alorenz allow user to retrive the data used to generate the curves, and implement first order stochastic dominance (Saposnik, 1981, 1983), second order stochastic dominance (Shorrocks, 1983), and the Lorenz dominance analysis of the distribution (Atkinson, 1970). Moreover, following Pigou-Dalton principles, demonstrated by Marshall & Olkin (1979), alorenz also ranks two or more social states by analysing the Lorenz, Generalized Lorenz, and Pen's Parade. alorenz also performs the two-sample Kolmogorov-Smirnov tests of the equality of distributions.
Atkinson, A.B., 1970, "On the Measurement of Inequality", Journal of Economic Theory, 2: 244-63.
Dalton, H., 1920, "The Measurement of the Inequality of Incomes", Economic Journal, 30:348-61.
Marshall, A.W. and I.Olkin, 1979, Inequalities: Theory of Majorization and Its Applications. In: Mathematics in Science and Engineering, V. 143. Academic Press.
Pigou, A.F., 1912, Wealth and Welfare, Macmillan, London.
Saposnik, R., 1981, "Rank-Dominance in Income Distribution" Public Choice, 36 pp147-151.
Saposnik, R., 1983, "On Evaluating Income Distributions: Rank Dominance, the Suppes-Sen Grading Principle of Justice and Pareto Optimality", Public Choice, 40: 329-36.
Shorrocks A.F., 1983, "Ranking Income Distributions", Economica, 50: 3-17.
This module should be installed from within Stata by typing "ssc install alorenz". Windows users should not attempt to download these files with a web browser.
Pen's Parade; Lorenz; Generalized Lorenz
João Pedro Azevedo
jazevedo@worldbank.org
World Bank
personal page
Samuel Franco