Quality of Weibull, Dagum and Burr XII in Estimating Wealth Distribution Across Countries and Over Time

Abstract

The objectives of this study are to present a method of approximation of the parameters of Burr XII, Weibull, and Dagum distributions, given a small number of data points of the distribution, and to determine which distribution provides a better goodness-of-fit for the distribution of wealth across countries, over time. Using five measures of goodness-of-fit, we obtained that the methodology we developed to estimate the parameters of each one of the distributions provides a high-quality fit, and the Bur XII distribution outperforms the Weibull or Dagum distributions in capturing the wealth distributions across countries over the years 2012-2018.