A Conditional Quantile Approach to Vector-Valued Bivariate Lorenz Surfaces: Properties and Applications

The Lorenz curve is a fundamental tool for measuring inequality, but its extension to multivariate settings remains challenging due to the complex dependence structure among variables and the need to capture directional aspects of inequality.

In this paper, we introduce a novel vector-valued bivariate Lorenz surface (VBLS) based on conditional distributions and conditional quantile functions.

Unlike existing symmetric bivariate Lorenz surfaces, the proposed VBLS effectively captures the directional inequality arising from the conditional dependence between two variables.

We establish several fundamental properties of the proposed surface and investigate its mathematical properties.

The corresponding egalitarian surface is defined, leading to the development of associated vector-valued bivariate Gini measures for quantifying inequality.

We further derive characterization results that demonstrate the uniqueness of the proposed VBLS within the underlying distributional framework.

Nonparametric estimators of the VBLS are developed and their finite-sample performance is evaluated through a simulation study.

The usefulness of the proposed methodology is also illustrated with applications to income inequality and actuarial data.