Modelling Income Using the Generalised Lambda Distribution

Haritha N. Haridas, N. Unnikrishnan Nair, K.R. Muraleedharan Nair

Abstract


In the present article we propose the generalised lambda distribution
as a model for income data. The quantile measures of location,
dispersion, skewness, and kurtosis of the distribution are matched
against the corresponding measures derived from the sample to estimate
the parameters of the model. It is shown that the distribution
provides reasonable fit to real data. Some properties of the model,
including measures of income inequality, are also discussed in the article.
Comparison of the generalised lambda distribution fits with other
models is made.

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