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A model of personal income distribution with application to Italian data

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Abstract

This article proposes the κ-generalized distribution as a descriptive model for the distribution and dispersion of income within a population based on the deformed exponential and logarithm functions recently introduced by Kaniadakis (Phys A 296:405–425, 2001; Phys Rev E 66:056125, 2002; Phys Rev E 72:036108, 2005). Expressions are reported which facilitate the analysis of the associated moments and various tools for the measurement of inequality. An empirical application, including a comparison of alternative distributions, is made to household income data in Italy for the years 1989 to 2006.

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Authors and Affiliations

  1. Department of Economics, Polytechnic University of Marche, Piazzale R. Martelli 8, 60121, Ancona, Italy

    Fabio Clementi & Mauro Gallegati

  2. Department of Physics, Polytechnic University of Turin, Corso Duca degli Abruzzi 24, 10129, Torino, Italy

    Giorgio Kaniadakis

Authors
  1. Fabio Clementi
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  2. Mauro Gallegati
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  3. Giorgio Kaniadakis
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Correspondence to Fabio Clementi.

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Clementi, F., Gallegati, M. & Kaniadakis, G. A model of personal income distribution with application to Italian data. Empir Econ 39, 559–591 (2010). https://doi.org/10.1007/s00181-009-0318-2

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  • DOI: https://doi.org/10.1007/s00181-009-0318-2

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