Perspectives on the World Income Distribution - Beyond Twin Peaks Towards Welfare Conclusions
AbstractThis paper contributes towards the growing debate concerning the world distribution of income and its evolution over that past three to four decades. Our methodological approach is twofold. First, we formally test for the number of modes in a cross-sectional analysis where each country is represented by one observation. We contribute to existing studies with technical improvements of the testing procedure, enabling us to draw new conclusions, and an extension of the time horizon being analyzed. Second, we estimate a global distribution of income from national log-normal distributions of income, as well as a global distribution of log-income as a mixture of national normal distributions of log-income. From this distribution we obtain measures for global inequality and poverty as well as global growth incidence curves.
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Bibliographic InfoPaper provided by Ibero-America Institute for Economic Research in its series Ibero America Institute for Econ. Research (IAI) Discussion Papers with number 158.
Length: 29 pages
Date of creation: 06 Feb 2007
Date of revision:
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Convergence; Silverman\'s test; non-parametric statistics; bimodal; global income distribution; poverty; inequality; growth incidence curves;
Other versions of this item:
- Weisbrod, Julian & Vollmer, Sebastian & Holzmann, Hajo, 2007. "Perspectives on the World Income Distribution: Beyond Twin Peaks Towards Welfare Conclusions," Proceedings of the German Development Economics Conference, GÃ¶ttingen 2007 32, Verein für Socialpolitik, Research Committee Development Economics.
- O0 - Economic Development, Technological Change, and Growth - - General
- C5 - Mathematical and Quantitative Methods - - Econometric Modeling
- I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
- F0 - International Economics - - General
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