The equality parameter as a highly aggregated index of an income distribution is complemented by the finer measure of an equality function. Lorenz curves with linear equality functions are developed and fitted to empirical data by squared error regression. The transition from equality parameters to equality functions significantly reduces regression errors. Relative poverty lines are subsequently introduced, computed approximately and their induced rankings of nations are investigated.

Key words: differential equation, income distribution, Lorenz curve.

Forschungsinstitut für anwendungsorientierte Wissensverarbeitung FAW

Published 2001