A Generalized Statistical Model for the Size Distribution of Wealth

J. Stat. Mech. (2012) P12006

23 Pages Posted: 22 Sep 2012 Last revised: 6 Dec 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: September 21, 2012

Abstract

In a recent paper in this journal [J. Stat. Mech. (2009) P02037] we proposed a new, physically motivated, distribution function for modeling individual incomes having its roots in the framework of the k-generalized statistical mechanics. The performance of the k-generalized distribution was checked against real data on personal income for the United States in 2003. In this paper we extend our previous model so as to be able to account for the distribution of wealth. Probabilistic functions and inequality measures of this generalized model for wealth distribution are obtained in closed form. In order to check the validity of the proposed model, we analyze the U.S. household wealth distributions from 1984 to 2009 and conclude an excellent agreement with the data that is superior to any other model already known in the literature.

Keywords: k-generalized statistics, wealth distribution, finite mixture models

JEL Classification: C46, D31

Suggested Citation

Clementi, Fabio and Gallegati, Mauro and Kaniadakis, Giorgio, A Generalized Statistical Model for the Size Distribution of Wealth (September 21, 2012). J. Stat. Mech. (2012) P12006. Available at SSRN: https://ssrn.com/abstract=2150132 or http://dx.doi.org/10.2139/ssrn.2150132

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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