The power-law tail exponent of income distributions
AbstractIn this paper we tackle the problem of estimating the power-law tail exponent of income distributions by using the Hill's estimator. A subsample semi-parametric bootstrap procedure minimizing the mean squared error is used to choose the power-law cutoff value optimally. This technique is applied to personal income data for Australia and Italy.
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Bibliographic InfoArticle provided by Elsevier in its journal Physica A: Statistical Mechanics and its Applications.
Volume (Year): 370 (2006)
Issue (Month): 1 ()
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Web page: http://www.journals.elsevier.com/physica-a-statistical-mechpplications/
Personal income; Pareto's index; Hill's estimator; Bootstrap;
Other versions of this item:
- F. Clementi & T. Di Matteo & M. Gallegati, 2006. "The Power-law Tail Exponent of Income Distributions," Papers physics/0603061, arXiv.org.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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