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Masato Okamoto
''A flexible descriptive model for the size distribution of incomes''
( 2014, Vol. 34 No.3 )
There are four-parameter income distribution models that have good reputation for goodness-of-fit. In contrast, the existing models with five or more parameters fail to achieve a satisfactory level of goodness-of-fit. We propose a new seven-parameter model that is empirically shown to be substantially better fitted than the existing models by imposing an appropriate restriction on the parameter domain prior to the maximum likelihood estimation.
Keywords: income distribution, Lorenz curve, mixture distribution, model selection
JEL: C4 - Econometric and Statistical Methods: Special Topics
D6 - Welfare Economics: General
Manuscript Received : Apr 30 2014 Manuscript Accepted : Jul 25 2014

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