-generalized statistics in personal income distribution

DOI10.1140/EPJB/E2007-00120-9MaRDI QIDQ978816zbMATH OpenOpenAlexFDO

Authors Fabio Clementi, Mauro Gallegati, G. Kaniadakis

Publication date 25 June 2010

Published in The European Physical Journal B. Condensed Matter and Complex Systems (Search for Journal in Brave)

Full work available at URL https://arxiv.org/abs/physics/0607293

Mathematics Subject Classification ID

Reliability and life testing (62N05) Applications of statistics to economics (62P20) Statistical methods; economic indices and measures (91B82) Numerical methods (including Monte Carlo methods) (91G60)

Abstract: Starting from the generalized exponential function $ex{p}_{kappa}(x)=(sqrt1+kapp{a}^2{x}^2+kappax{)}^{1/kappa}$, with $ex{p}_0(x)=exp(x)$, proposed in Ref. [G. Kaniadakis, Physica A extbf{296}, 405 (2001)], the survival function $$, where $xinmathbf{R}^{+}$, $$, and $kappain[0,1)$, is considered in order to analyze the data on personal income distribution for Germany, Italy, and the United Kingdom. The above defined distribution is a continuous one-parameter deformation of the stretched exponential function $$ extemdash to which reduces as $kappa$ approaches zero extemdash behaving in very different way in the $xo0$ and $xoinfty$ regions. Its bulk is very close to the stretched exponential one, whereas its tail decays following the power-law $$. This makes the $kappa$-generalized function particularly suitable to describe simultaneously the income distribution among both the richest part and the vast majority of the population, generally fitting different curves. An excellent agreement is found between our theoretical model and the observational data on personal income over their entire range.

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Cited in

(16)

• Deformed exponentials and applications to finance
• Theoretical foundations and mathematical formalism of the power-law tailed statistical distributions
• Power-law tailed statistical distributions and Lorentz transformations
• A new model of income distribution: the \(\kappa \)-generalized distribution
• Mathematical modeling of probability distribution of money by means of potential formation
• A maximum (non-extensive) entropy approach to equity options bid-ask spread
• Dust charging current in non equilibrium dusty plasma in the context of Kaniadakis generalization
• The minimal \(\kappa \)-entropy martingale measure
• Physical origin of the power-law tailed statistical distributions
• Oscillations in the Tsallis income distribution
• A generalized statistical model for the size distribution of wealth
• Scaling in income inequalities and its dynamical origin
• Newton's cooling law in generalised statistical mechanics
• A new Pareto-type distribution with applications in reliability and income data
• How the gamma law of income distribution appears invariant under aggregation*
• Thermodynamic properties of the blackbody radiation: a Kaniadakis approach

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