Hybrid models of the Lorenz curve

In this paper hybrid Lorenz curves are proposed as a way of circumventing an important drawback of traditional models of the Lorenz curve, namely lack of satisfactory fit over the entire range of a given income distribution. Two categories of hybrid models are identified, namely the additive models and the multiplicative models. Whereas the additive models are obtained by taking convex combinations of the traditional models, the multiplicative models are obtained by taking their weighted products. A comparison of the performances of the hybrid Lorenz curves with those of the constituent Lorenz curves shows that both the additive and multiplicative models perform generally better than the constituent Lorenz curves. (C) 2000 Elsevier Science S.A. All rights reserved.