Authors

• Ashkan Ertefaie
• Ahmad Parsian

Abstract

The use of the Pareto distribution as a model for various
socio-economic phenomena dates back to the late nineteenth century.
In this paper, after some necessary preliminary results we deal with
Bayes estimation of some of the parameters of interest under an asymmetric
LINEX loss function, using suitable choice of priors when the
scale parameter is known and unknown. Results of a Monte Carlo
simulation study conducted to evaluate the performances of these estimators
compared to the MLE’s and MME’s in terms of estimated
risks under LINEX loss function.

Keywords

• Bayesian estimation
• LINEX loss function
• MCMC methods
• Monte Carlo methods
• Pareto income distribution