A New Model of Income Distribution: The K-Generalized Distribution

20 Pages Posted: 20 Oct 2008 Last revised: 10 Jan 2012

See all articles by Fabio Clementi

Fabio Clementi

Università degli studi di Macerata

Mauro Gallegati

Università Politecnica delle Marche - Faculty of Economics

Giorgio Kaniadakis

Polytecnico di Torino

Date Written: June 6, 2011

Abstract

This paper proposes a three-parameter statistical model of income distribution using the maximum entropy principle based on a generalized entropic measure suggested by Kaniadakis (2001, 2002, 2005). Formulas for the shape, moments and standard tools for inequality measurement are given. The model is shown to fit remarkably well the personal income data for Great Britain, Germany and the United States in different years, and its empirical performance appears to be competitive with that of other existing distributions.

Keywords: C16, D31

JEL Classification: Income distribution, income inequality, k-generalized distribution

Suggested Citation

Clementi, Fabio and Gallegati, Mauro and Kaniadakis, Giorgio, A New Model of Income Distribution: The K-Generalized Distribution (June 6, 2011). Journal of Economics, Vol. 105, No. 1, 2012. Available at SSRN: https://ssrn.com/abstract=1287099 or http://dx.doi.org/10.2139/ssrn.1287099

Fabio Clementi (Contact Author)

Università degli studi di Macerata ( email )

Piazza Strambi 1
62100 Macerata
Italy
+39 0733 258 2560 (Phone)

HOME PAGE: http://docenti.unimc.it/fabio.clementi?set_language=en&cl=en

Mauro Gallegati

Università Politecnica delle Marche - Faculty of Economics ( email )

Piazzale Martelli, 8
60121 Ancona
Italy
++390712207188 (Phone)
++390712207102 (Fax)

Giorgio Kaniadakis

Polytecnico di Torino ( email )

Corso Duca degli Abruzzi 24
Torino, 10129
Italy

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