Estimating Lorenz Curve for Iran by Using Continuous L1 Norm Estimation

Bijan Bidabad

doi:10.46281/ijmri.v3i1.322

Bijan Bidabad Professor, Economics and Chief Islamic Banking Advisor, Bank Melli, Iran

DOI: https://doi.org/10.46281/ijmri.v3i1.322

Keywords: L1 norm, Lorenz Curve, Continuous estimation, Income distribution

Abstract

In this paper, the L1 norm of continuous functions and corresponding continuous estimation of regression parameters are defined. The continuous L1 norm estimation problem of one and two parameters linear models in the continuous case are solved. We proceed to use the functional form and parameters of the probability distribution function of income to exactly determine the L1 norm approximation of the corresponding Lorenz curve of the statistical population under consideration. Iran family budget data were used to estimate income distribution for the period of 1362-1370.

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