Distribution of the ratio of two independent Dagum random variables

• Authors: Angiola POLLASTRI , Giovanni ZAMBRUNO
• Languages of publication: EN

Abstracts

EN

An estimation procedure of the distribution of the ratio of two independent Dagum random variables is proposed. Such an issue is of remarkable importance when analyzing the characteristics of ratios of economic variables which can be described by the Dagum model. The distribution and density functions are computed via numerical procedures; a numerical method is also proposed, in order to make the computation of the distribution easier and faster. Finally, some empirical investigations are reported, in order to establish the effectiveness of the model, and an application is presented concerning the estimation of the distribution of the ratio between the expenditures of a 2-member and a 1-member household, based on the Banca d’Italia 2006 survey.

Keywords

EN

Dagum distribution; independent Dagum r.v.’s; distribution functions

• Publisher: Politechnika Wrocławska. Oficyna Wydawnicza Politechniki Wrocławskiej
• Journal: Operations Research and Decisions
• Year: 2010
• Volume: 20
• Issue: 3-4
• Pages: 95-102

Contributors

author

Angiola POLLASTRI

• Dipartimento di Metodi Quantitativi per le Scienze Economiche ed Aziendali, Università di Milano Bicocca, Italia

author

Giovanni ZAMBRUNO

• Dipartimento di Metodi Quantitativi per le Scienze Economiche ed Aziendali, Università di Milano Bicocca, Italia

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