Given min and max values, how can I estimate shape parameter (tail index) of data generated by truncated pareto distribution ? I see a package tpareto but find no information on how to estimate tail index from given data.

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#### Best Answer

Using `VGAM`

truncated Pareto functions with `fitdistrplus`

, the following should work:

`lower <- min(data) upper <- max(data) fit <- fitdist(data, 'truncpareto', start=list(lower=lower, upper=upper, shape=1)) `

This applies the Pareto bounds first to estimate the shape parameter before plugging it into the truncated Pareto MLE function. However, `truncpareto`

has been giving me issues, so I cannot verify it yet.

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