A generalized statistical model for the size distribution of wealth
In a recent paper in this journal [J. Stat. Mech. (2009) P02037] we proposed a new, physically motivated, distribution function for modeling individual incomes having its roots in the framework of the k-generalized statistical mechanics. The performance of the k-generalized distribution was checked against real data on personal income for the United States in 2003. In this paper we extend our previous model so as to be able to account for the distribution of wealth. Probabilistic functions and inequality measures of this generalized model for wealth distribution are obtained in closed form. In order to check the validity of the proposed model, we analyze the U.S. household wealth distributions from 1984 to 2009 and conclude an excellent agreement with the data that is superior to any other model already known in the literature.
|Date of creation:||Sep 2012|
|Date of revision:||Dec 2012|
|Publication status:||Published in Journal of Statistical Mechanics: Theory and Experiment, 6 December 2012, start page: P12006|
|Contact details of provider:|| Web page: http://arxiv.org/|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fabio Clementi & Mauro Gallegati & Giorgio Kaniadakis, 2012. "A new model of income distribution: the κ-generalized distribution," Journal of Economics, Springer, vol. 105(1), pages 63-91, January.
- Clementi, F. & Di Matteo, T. & Gallegati, M. & Kaniadakis, G., 2008.
"The κ-generalized distribution: A new descriptive model for the size distribution of incomes,"
Physica A: Statistical Mechanics and its Applications,
Elsevier, vol. 387(13), pages 3201-3208.
- F. Clementi & T. Di Matteo & M. Gallegati & G. Kaniadakis, 2007. "The k-generalized distribution: A new descriptive model for the size distribution of incomes," Papers 0710.3645, arXiv.org, revised Jan 2008.
- Christian Kleiber, 2007. "A Guide to the Dagum Distributions," Working papers 2007/23, Faculty of Business and Economics - University of Basel.
- F. Clementi & M. Gallegati & G. Kaniadakis, 2007.
"κ-generalized statistics in personal income distribution,"
The European Physical Journal B - Condensed Matter and Complex Systems,
Springer, vol. 57(2), pages 187-193, 05.
- F. Clementi & M. Gallegati & G. Kaniadakis, 2006. "k-Generalized Statistics in Personal Income Distribution," Papers physics/0607293, arXiv.org, revised Feb 2007.
- Martin Biewen & Stephen Jenkins, 2005. "A framework for the decomposition of poverty differences with an application to poverty differences between countries," Empirical Economics, Springer, vol. 30(2), pages 331-358, 09.
- Joseph E. Stiglitz, 1967.
"Distribution of Income and Wealth Among Individuals,"
Cowles Foundation Discussion Papers
238, Cowles Foundation for Research in Economics, Yale University.
- Stiglitz, Joseph E, 1969. "Distribution of Income and Wealth among Individuals," Econometrica, Econometric Society, vol. 37(3), pages 382-97, July.
- Vuong, Quang H, 1989. "Likelihood Ratio Tests for Model Selection and Non-nested Hypotheses," Econometrica, Econometric Society, vol. 57(2), pages 307-33, March.
- Rajaonarison, Dominique & Bolduc, Denis & Jayet, Hubert, 2005. "The K-deformed multinomial logit model," Economics Letters, Elsevier, vol. 86(1), pages 13-20, January.
- Robert E. Lipsey & Helen Stone Tice, 1989. "The Measurement of Saving, Investment, and Wealth," NBER Books, National Bureau of Economic Research, Inc, number lips89-1, August.
- Fabio Clementi & Mauro Gallegati & Giorgio Kaniadakis, 2010. "A model of personal income distribution with application to Italian data," Empirical Economics, Springer, vol. 39(2), pages 559-591, October.
- repec:ese:iserwp:2005-05 is not listed on IDEAS
- F. Clementi & M. Gallegati & G. Kaniadakis, 2009. "A k-generalized statistical mechanics approach to income analysis," Papers 0902.0075, arXiv.org, revised Feb 2009.
- Claudio Quintano & Antonella D'Agostino, 2006. "Studying Inequality In Income Distribution Of Single-Person Households In Four Developed Countries," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 52(4), pages 525-546, December.
- Singh, S K & Maddala, G S, 1976. "A Function for Size Distribution of Incomes," Econometrica, Econometric Society, vol. 44(5), pages 963-70, September.
- Kleiber, Christian, 1996. "Dagum vs. Singh-Maddala income distributions," Economics Letters, Elsevier, vol. 53(3), pages 265-268, December.
- James B. Davies & Susanna Sandström & Anthony Shorrocks & Edward Wolff, 2009. "The global pattern of household wealth," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(8), pages 1111-1124.
- Richard T. Curtin & Thomas Juster & James N. Morgan, 1989. "Survey Estimates of Wealth: An Assessment of Quality," NBER Chapters, in: The Measurement of Saving, Investment, and Wealth, pages 473-552 National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:arx:papers:1209.4787. See general information about how to correct material in RePEc.
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.