Document Type

Article

Source Publication Title

Journal of Statistical and Econometric Methods

First Page

17

Last Page

40

Abstract

This paper introduces a method for simulating univariate and multivariate Dagum distributions through the method of ??-moments and ??-correlations. A method is developed for characterizing non-normal Dagum distributions with controlled degrees of ??-skew, ??-kurtosis, and ??-correlations. The procedure can be applied in a variety of contexts such as statistical modeling (e.g., income distribution, personal wealth distributions, etc.) and Monte Carlo or simulation studies. Numerical examples are provided to demonstrate that ??-moment-based Dagum distributions are superior to their conventional moment-based analogs in terms of estimation and distribution fitting. Evaluation of the proposed method also demonstrates that the estimates of ??-skew, ?? -kurtosis, and ?? -correlation are substantially superior to their conventional product-moment based counterparts of skew, kurtosis, and Pearson correlation in terms of relative bias and relative efficiency–most notably in the context of heavy-tailed distributions.

Disciplines

Curriculum and Instruction | Education

Publication Date

1-1-2013

Language

English

Available for download on Wednesday, January 01, 3000

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