Is the wealth of the world’s billionaires not Paretian?
According to previous studies that applied a popular goodness-of-fit test, the wealth of the world’s billionaires does not follow a Pareto distribution. The test applied by those studies assumes that wealth is measured without error, yet, if different sources of data on the wealthiest people in the world are compared, then wealth appears to be measured with error. This paper shows that the conclusions drawn from the goodness-of-fit test can change when the test is modified to account for measurement errors.
Volume (Year): 395 (2014)
Issue (Month): C ()
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