k -generalized statistics in personal income distribution

Publication type

Journal Article

Authors

Publication date

June 1, 2007

Abstract:

Starting from the generalized exponential function exp (x) = v1 + 2x2 + x1/ , with exp0 (x) = exp(x), proposed in reference [G. Kaniadakis, Physica A 296, 405 (2001)], the survival function P> (x) = exp (-ßxa), where x R+, a, ß > 0, and [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 P0> (x) = exp(-ßxa) — to which reduces as approaches zero — behaving in very different way in the x 0 and x 8 regions. Its bulk is very close to the stretched exponential one, whereas its tail decays following the power-law P> (x) ~ (2ß )-1/ x-a/ . This makes the -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.

Published in

European Physical Journal B: Condensed Matter and Complex Systems

Volume

Volume: 57 (2):187-193

DOI

http://dx.doi.org/10.1140/epjb/e2007-00120-9

Subject

Notes

not held in Res Lib - bibliographic reference only

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