ALORENZ: Stata module to produce Pen's Parade, Lorenz and Generalised Lorenz curve

Abstract:

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.

Suggested Citation

Joao Pedro Azevedo & Samuel Franco, 2006. "ALORENZ: Stata module to produce Pen's Parade, Lorenz and Generalised Lorenz curve," Statistical Software Components S456749, Boston College Department of Economics, revised 09 Jul 2012.

References

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.

ADO Dependencies

Paul Corral & Minh Cong Nguyen & Joao Pedro Azevedo, 2018. "GROUPFUNCTION: Stata module to replace several basic collapse functions," Statistical Software Components S458475, Boston College Department of Economics.

Daniel Klein, 2019. "WHICH_VERSION: Stata module to return location and programmer's version of ado-files," Statistical Software Components S4584706, Boston College Department of Economics, revised 11 Nov 2019.

Handle: RePEc:boc:bocode:s456749

Note:

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.

Keywords:

Pen's Parade; Lorenz; Generalized Lorenz

Authors:

João Pedro Azevedo
jazevedo@worldbank.org
World Bank
personal page

Samuel Franco