Universal Structure of the Personal Income Distribution
AbstractWe investigate the Japanese personal income distribution in the high income range over the 112 years 1887-1998, and that in the middle income range over the 44 years 1955-98. It is observed that the distribution pattern of the lognormal with power law tail is the universal structure. However the indexes specifying the distribution differ from year to year. One of the index characterizing the distribution is the mean value of the lognormal distribution; the mean income in the middle income range. It is found that this value correlates linearly with the Gross Domestic Product (GDP). To clarify the temporal change of the equality or inequality of the distribution, we analyze Pareto and Gibrat indexes, which characterize the distribution in the high income range and that in the middle income range respectively. It is found for some years that there is no correlation between the high income and the middle income. It is also shown that the mean value of Pareto index equals to 2, and the change of this index is effected by the change of the asset price. From these analysis we derive four constraints that must be satisfied by mathematical models.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by arXiv.org in its series Papers with number cond-mat/0011373.
Date of creation: Nov 2000
Date of revision:
Contact details of provider:
Web page: http://arxiv.org/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- G. Willis, 2004.
"Laser Welfare: First Steps in Econodynamic Engineering,"
- Geoff Willis, 2004. "Laser Welfare: First Steps in Econodynamic Engineering," Microeconomics 0408003, EconWPA.
- Wataru Souma, 2002. "Physics of Personal Income," Papers cond-mat/0202388, arXiv.org.
- Chakrabarti, Anindya S. & Chakrabarti, Bikas K., 2010. "Statistical theories of income and wealth distribution," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 4(4), pages 1-31.
- G. Willis & J. Mimkes, 2004.
"Evidence for the Independence of Waged and Unwaged Income, Evidence for Boltzmann Distributions in Waged Income, and the Outlines of a Coherent Theory of Income Distribution,"
- Geoff Willis & Juergen Mimkes, 2004. "Evidence for the Independence of Waged and Unwaged Income, Evidence for Boltzmann Distributions in Waged Income, and the Outlines of a Coherent Theory of Income Distribution," Microeconomics 0408001, EconWPA.
- Jiandong Chen & Dai Dai & Ming Pu & Wenxuan Hou & Qiaobin Feng, 2010. "The trend of the Gini coefficient of China," Brooks World Poverty Institute Working Paper Series 10910, BWPI, The University of Manchester.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (arXiv administrators).
If references are entirely missing, you can add them using this form.