Aspects of Pareto distributions

Different skew models, such as the lognormal and the Pareto functions, have been proposed as suitable descriptions of income distribution. Specific distributions are usually applied in empirical investigations. It is a common opinion that the Pareto curve often provides an adequate description of hi...

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Bibliographic Details
Published in:Journal of Statistical and Econometric Methods 2021-01, Vol.10 (1)
Main Author: Fellman, Johan
Format: Article
Language:English
Subjects:
Income distribution
Online Access:Get full text
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Summary:Different skew models, such as the lognormal and the Pareto functions, have been proposed as suitable descriptions of income distribution. Specific distributions are usually applied in empirical investigations. It is a common opinion that the Pareto curve often provides an adequate description of higher incomes. Recently, double Pareto distributions that obey the power law in both the upper and lower tails have been suggested to reflect a general distribution of personal income. In this study, the literature concerning double Pareto models is presented and the model is applied to Finnish income data.
ISSN:2241-0384
2241-0376