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Investigating the distribution of personal income obtained from the recent U.S. data

  • Newby, Michael
  • Behr, Adam
  • Feizabadi, Mitra Shojania
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    This study considered the conservation of money in a closed economic system. In such system, the probability distribution of money is exponential, and similar to the Boltzmann-Gibbs function in a closed energy system. The theoretical concept of econophysics is compared here with empirical data. The current work analyzes the recent data with regard to personal income distribution obtained from United States Census Bureau for the years 2006, 2007 and 2008. The data was best fitted with the exponential function, which supports the theoretical assumption for the income of the majority of the population. This study also investigates this distribution for a population with high personal income.

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    File URL: http://www.sciencedirect.com/science/article/B6VB1-5208098-3/2/5c255268047f80ace10e049f656a1c75
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    Article provided by Elsevier in its journal Economic Modelling.

    Volume (Year): 28 (2011)
    Issue (Month): 3 (May)
    Pages: 1170-1173

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    Handle: RePEc:eee:ecmode:v:28:y:2011:i:3:p:1170-1173
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/30411

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    2. Anand Banerjee & Victor M. Yakovenko, 2009. "Universal patterns of inequality," Papers 0912.4898, arXiv.org, revised Apr 2010.
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    4. Jean-Philippe Bouchaud & Marc Mezard, 2000. "Wealth condensation in a simple model of economy," Science & Finance (CFM) working paper archive 500026, Science & Finance, Capital Fund Management.
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    6. Drăgulescu, Adrian & Yakovenko, Victor M., 2001. "Exponential and power-law probability distributions of wealth and income in the United Kingdom and the United States," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 299(1), pages 213-221.
    7. Adrian Dragulescu & Victor M. Yakovenko, 2000. "Statistical mechanics of money," Papers cond-mat/0001432, arXiv.org, revised Aug 2000.
    8. Adrian Dragulescu & Victor M. Yakovenko, 2001. "Exponential and power-law probability distributions of wealth and income in the United Kingdom and the United States," Papers cond-mat/0103544, arXiv.org, revised Mar 2001.
    9. Per Bak & Simon F. Norrelykke & Martin Shubik, 1998. "The Dynamics of Money," Research in Economics 98-11-102e, Santa Fe Institute.
    10. Ning Ding & Ning Xi & Yougui Wang, 2005. "Effects of Saving and Spending Patterns on Holding Time Distribution," Papers physics/0507149, arXiv.org.
    11. Banerjee, Anand & Yakovenko, Victor M. & Di Matteo, T., 2006. "A study of the personal income distribution in Australia," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 370(1), pages 54-59.
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