Abstract
The Lorenz curve is a fundamental tool for analysing income and wealth distribution and inequality at national and regional levels. We utilise a one-way functional analysis of variance to decompose a time series of Lorenz curves and develop a method for producing one-step-ahead point and interval forecasts. The one-way functional analysis of variance is easily interpretable by decomposing an array into a functional grand effect, a functional row effect and residual functions. We evaluate and compare the forecast accuracy between the functional analysis of variance and three non-functional methods using the Italian household income and wealth data.
Original language | English |
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Journal | Journal of Applied Statistics |
Early online date | 8 Apr 2025 |
DOIs | |
Publication status | E-pub ahead of print - 8 Apr 2025 |
Keywords
- functional principal component analysis
- functional time series
- high dimensionality
- income and wealth inequality
- Gini index