Aspects of Pareto distributions

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Abstract

Different skew models, such as the lognormal and the Pareto functions, have been proposed as suitable descriptions of income distribution. Specific distributions are usually applied in empirical investigations. It is a common opinion that the Pareto curve often provides an adequate description of higher incomes. Recently, double Pareto distributions that obey the power law in both the upper and lower tails have been suggested to reflect a general distribution of personal income. In this study, the literature concerning double Pareto models is presented and the model is applied to Finnish income data.
Original languageEnglish
Peer-reviewed scientific journalJournal of Statistical and Econometric Methods
Volume10
Issue number1
Pages (from-to)55-66
Number of pages12
ISSN2241-0384
DOIs
Publication statusPublished - 29.03.2021
MoE publication typeA1 Journal article - refereed

Keywords

  • 112 Statistics and probability
  • Maximum likelihood estimate
  • Method of moments
  • Bayesian method
  • Mean Squared Error
  • Lognormal
  • double Pareto
  • Coefficient of determination
  • survival function
  • Geometric Brownian motion

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