Histogram-Based Interpolation of the Lorenz Curve and Gini Index for Grouped Data

Abstract

In grouped data, the estimation of the Lorenz curve without taking into account the within-class variability leads to an overestimation of the curve and an underestimation of the Gini index. We propose a new strictly convex estimator of the Lorenz curve derived from a linear interpolation-based approximation of the cumulative distribution function. Integrating the Lorenz curve, a correction can be derived for the Gini index that takes the intraclass variability into account.