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Stability of household income in European countries in the 1990's

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  • Longford, Nicholas T.

    (De Montfort University, Leicester, UK)

  • Pittau, Maria Grazia

    (University of Rome La Sapienza, Italy)

Abstract

This paper explores the patterns of change in the annual household income in the countries of the European Community during the years 1994-1999. The income is modelled by mixtures of multivariate log-normal distributions, and the mixture components are interpreted as representing one subpopulation with steady increments and others with various levels of volatility. The method is extended to models for a combination of log-normal and categorical variables. An index of income stability is defined for the countries. Throughout, we emphasize graphical summaries of the results.

Suggested Citation

  • Longford, Nicholas T. & Pittau, Maria Grazia, 2003. "Stability of household income in European countries in the 1990's," IRISS Working Paper Series 2003-08, IRISS at CEPS/INSTEAD.
  • Handle: RePEc:irs:iriswp:2003-08
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    References listed on IDEAS

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    7. Burkhauser, Richard V, et al, 1999. "Testing the Significance of Income Distribution Changes over the 1980s Business Cycle: A Cross-National Comparison," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(3), pages 253-272, May-June.
    8. Quah, Danny, 1993. "Empirical cross-section dynamics in economic growth," European Economic Review, Elsevier, vol. 37(2-3), pages 426-434, April.
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    13. Roberto Zelli & Maria Grazia Pittau, 2006. "Empirical evidence of income dynamics across EU regions," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(5), pages 605-628.
    14. Duncan, Greg J & Hill, Daniel H, 1989. "Assessing the Quality of Household Panel Data: The Case of the Panel Study of Income Dynamics," Journal of Business & Economic Statistics, American Statistical Association, vol. 7(4), pages 441-452, October.
    15. Franco Peracchi, 2002. "The European Community Household Panel: A review," Empirical Economics, Springer, vol. 27(1), pages 63-90.
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    Cited by:

    1. Huiwen Wang & Shan Lu & Jichang Zhao, 2018. "Aggregating multiple types of complex data in stock market prediction: A model-independent framework," Papers 1805.05617, arXiv.org.
    2. Nicholas Longford, 2008. "Inference with the lognormal distribution," Economics Working Papers 1104, Department of Economics and Business, Universitat Pompeu Fabra.
    3. Longford, N.T. & Pittau, M.G., 2006. "Stability of household income in European countries in the 1990s," Computational Statistics & Data Analysis, Elsevier, vol. 51(2), pages 1364-1383, November.
    4. Borodkin, Fridrich & Bragin, Vladimir & Shpack, Maria, 2006. "Stability of Incomes Distribution in Modern Russia (1994–2004)," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 3(3), pages 17-67.
    5. Jitka Bartošová & Vladislav Bína, 2009. "Modelling of Income Distribution of Czech Households in The Years 1996-2005," Acta Oeconomica Pragensia, University of Economics, Prague, vol. 2009(4), pages 3-18.
    6. Nicholas Longford & Pierpaolo D’Urso, 2012. "Mixtures of Autoregressions with an Improper Component for Panel Data," Journal of Classification, Springer;The Classification Society, vol. 29(3), pages 341-362, October.

    More about this item

    Keywords

    EM algorithm ; household income ; kernel estimation ; log-normal distribution ; mixture models;

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