Events and Meetings of Italian Statistical Society, Statistics and Demography: the Legacy of Corrado Gini

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Reparameterizations of Dagum Distribution
Francesca Condino, Sabrina Giordano, Bozidar Popovic

Last modified: 2015-09-05

Abstract


The Dagum distribution has been widely used as a model for the income
distribution. In this paper, we will reparameterize this distribution to make its parameters directly interpretable in terms of median, inequality and poverty measures. These measures are much more relevant for their practical use than the classical shape, location and scale parameters of the parametric families used as income distributions. Moreover, we aim at identifying a set of covariates that can affect location, inequality and poverty simultaneously and in so doing we express these measures as functions of a predictor sufficiently general to capture any effects other than linear. Such an approach seems to offer a novelty with respect to the literature.

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