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Prepares data for Lorenz Quadratic regression

Source: R/gd_compute_pip_stats_lq.R
create_functional_form_lq.Rd

Prepares data for regression of L(1-L) on (P^2-L), L(P-1) and (P-L). The last observation of (p,l), which by construction has the value (1, 1), is excluded since the functional form for the Lorenz curve already forces it to pass through the point (1, 1). Equation 15 in Lorenz Quadratic original paper.

Usage

create_functional_form_lq(welfare, population)

Arguments

welfare

numeric: Welfare vector from empirical Lorenz curve.

population

numeric: Population vector from empirical Lorenz curve.

Value

data.frame

References

Krause, M. 2013. "Corrigendum to Elliptical Lorenz curves". Journal of Econometrics 174 (1): 44.

Villasenor, J., B. C. Arnold. 1989. "Elliptical Lorenz curves". Journal of Econometrics 40 (2): 327-338.