ALORENZ

Description

alorenz generates and visualizes three key distributional curves: Pen’s Parade, Lorenz, and Generalized Lorenz curves. The module enables comparative analysis of income inequality across different social states with the following analytical capabilities:

• Stochastic dominance tests: First-order and second-order stochastic dominance analyses.
• Lorenz dominance analysis: Evaluates distributional differences per Atkinson’s framework.
• Pigou-Dalton ranking: Compares multiple social states using established inequality principles.
• Distribution testing: Two-sample Kolmogorov-Smirnov tests for equality assessment.

Dependencies: Requires groupfunction and which_version.

Examples

sysuse auto, clear

* Basic Lorenz curve
alorenz price, view

* Weighted with full view (Pen's Parade + Lorenz + Generalized Lorenz)
alorenz price [pw=weight], fullview

* All curves with 45-degree line, by group
alorenz price [pw=weight], points(20) view gl ge gp ///
    angle45 format(%12.0f) by(foreign)

Citation

Azevedo, J.P. and Franco, S. (2006). “ALORENZ: Stata module to produce Pen’s Parade, Lorenz and Generalised Lorenz curve.” Statistical Software Components S456749, Boston College Department of Economics.