Asymptotic sampling distribution of concentration indices: a parametric approach

Abstract

The objective of this work is to find the limiting sample distribution of three inequality measures assuming either Pareto or Log-normal distribution of income in the population. The method for obtaining such limiting distribution consists in deriving the maximum likelihood estimators of the parameters of the Pareto and Log-normal distribution. Then the limiting distribution are obtained by considering the general property of the asymptotic normality enjoyed by the maximum likelihood estimators.