Discussion Papers no. 246
Is the distribution of income compatible with s stable distribution?
Mandelbrot (1961) proposed to apply the class of Pareto-Levy distributions - which belong to the Stable distributions - as a framework for modelling income distributions. He also presented theoretic arguments in favor of the Pareto-Levy distributions. In this paper we provide additional theoretical justification for this class of distributions. We also use micro data on individual market income to estimate the parameters of a Pareto-Levy distribution. Several estimation methods have been applied. The estimated Pareto-Levy distribution appears to fit the data well.
Om publikasjonen
- Tittel
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Is the distribution of income compatible with s stable distribution?
- Ansvarlige
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John K. Dagsvik, Bjørn Helge Vatne
- Serie og -nummer
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Discussion Papers no. 246
- Utgiver
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Statistics Norway, Research Department
- Emne
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Discussion Papers
- Antall sider
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28
- Målform
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Engelsk
- Om Discussion Papers
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Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.
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