This paper proposes the k-generalized distribution as a model for describing the distribution and dispersion of income within a population. Formulas for the shape, moments and standard tools for inequality measurement - such as the Lorenz curve and the Gini coefficient - are given. A method for parameter estimation is also discussed. The model is shown to fit extremely well the data on personal income distribution in Australia and the United States.
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Length: Date of creation: Oct 2007 Date of revision:
Jan 2008 Publication status: Published in Physica A: Statistical Mechanics and its Applications, Vol: 387, Issue: 13, 15 May 2008, pp: 3201-3208 Handle: RePEc:arx:papers:0710.3645