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 Verein für Socialpolitik, Research Committee Development Economics in its series Proceedings of the German Development Economics Conference, Göttingen 2007 with number 32.
Date of creation: 2007
Date of revision:
Convergence; Silverman's test; non-parametric statistics; bimodal; global income distribution; poverty; inequality; growth incidence curves;
Other versions of this item:
- Hajo Holzmann & Sebastian Vollmer & Julian Weisbrod, 2007. "Perspectives on the World Income Distribution - Beyond Twin Peaks Towards Welfare Conclusions," Ibero America Institute for Econ. Research (IAI) Discussion Papers 158, Ibero-America Institute for Economic Research.
- F0 - International Economics - - General
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-12-01 (All new papers)
- NEP-DEV-2007-12-01 (Development)
- NEP-ECM-2007-12-01 (Econometrics)
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