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Some Generalized Functions for the Size Distribution of Income

In: Modeling Income Distributions and Lorenz Curves

Author

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  • James B. McDonald
Abstract
Many distributions have been used as descriptive models for the size distribution of income. This paper considers two generalized beta distributions which include many of these models as special or limiting cases. These generalized distributions have not been used as models for the distribution of income and provide a unified method of comparing many models previously considered. Expressions are reported which facilitate parameter estimation and the analysis of associated means, variances, and various measures of inequality. The distributions considered are fit to US family income and their relative performance is compared.

Suggested Citation

  • James B. McDonald, 2008. "Some Generalized Functions for the Size Distribution of Income," Economic Studies in Inequality, Social Exclusion, and Well-Being, in: Duangkamon Chotikapanich (ed.), Modeling Income Distributions and Lorenz Curves, chapter 3, pages 37-55, Springer.
    • Handle: RePEc:spr:esichp:978-0-387-72796-7_3
    DOI: 10.1007/978-0-387-72796-7_3
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