A Model of Personal Income Distribution with Application to Italian Data
24 Pages Posted: 31 Aug 2008 Last revised: 9 Apr 2011
Date Written: June 17, 2009
This article proposes the k-generalized distribution as a descriptive model for the distribution and dispersion of income within a population based on the deformed exponential and logarithm functions recently introduced by Kaniadakis (Phys A 296:405–425, 2001; Phys Rev E 66:056125, 2002; Phys Rev E 72:036108, 2005). Expressions are reported which facilitate the analysis of the associated moments and various tools for the measurement of inequality. An empirical application, including a comparison of alternative distributions, is made to household income data in Italy for the years 1989 to 2006.
Keywords: income distribution, income inequality, k-generalized distribution
JEL Classification: C16, D31
Suggested Citation: Suggested Citation