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| Masato Okamoto |
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| ''A flexible descriptive model for the size distribution of incomes'' |
| ( 2014, Vol. 34 No.3 ) |
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| 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.
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| Keywords: income distribution, Lorenz curve, mixture distribution, model selection |
JEL: C4 - Econometric and Statistical Methods: Special Topics
D6 - Welfare Economics: General |
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| Manuscript Received : Apr 30 2014 | | Manuscript Accepted : Jul 25 2014 |
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