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Konvolut Wealth and Income Distribution 2

Bibliographic data

Works

Document type:
Works
Collection:
Josef Steindl Collection
Title:
Konvolut Wealth and Income Distribution 2
Author:
Steindl, Josef
Scope:
Konvolut aus handschriftlichen und maschinenschriftlichen Blättern (insgesamt 92 Blätter)
Year of publication:
1975
Source material date:
[vermutlich um 1975]
Language:
English
Description:
Das vorliegende Konvolut samt Anmerkungen in den Durchschlagskopien und handschriftlichen Notizen bezieht sich auf Modelle der Einkommens- und Vermögensverteilung von Pareto, Simon und Champernowne. Die theoretischen Ausführungen sind mit empirischen Daten aus den Niederlanden und Schweden gestützt.
Note:
Das Konvolut enthält Notizen und Teil eines Papers mit Seitennummerierung 8-25. Es liegen zusätzlich 2 Durchschlagskopien davon mit unterschiedlichen Anmerkungen, Ergänzungen und Korrekturen vor. Zusätzlich sind auf 2 Millimeterpapier-Blättern graphische Darstellungen der Berechnungen vorhanden.
Related work:
Steindl, Josef: The Pareto Distribution. In: Steindl, Josef: Economic Papers 1941-88. London: Macmillan, 1990, S. 321-327 Steindl, Josef: The Personal Distribution of Income. In: Steindl, Josef: Economic Papers 1941-88. London: Macmillan, 1990, S. 356-371 Steindl, Josef: The Distribution of Wealth after a Model of Wold and Whittle. In: Steindl, Josef: Economic Papers 1941-88. London: Macmillan, 1990, S. 328-355 Steindl, Josef: The Distribution of Wealth after a Model of Wold and Whittle. In: Review of Economic Studies, Vol. 39 (3), July, 1973, S. 263-279
Topic:
Stochastic processes and size distribution
JEL Classification:
D31 [Personal Income, Wealth, and Their Distributions]
Shelfmark:
S/M.36.1
Rights of use:
All rights reserved
Access:
Free access

Full text

12 - 
is 0,626 + 0,004 (data for 1962/63). The regression coefficient 
corresponds to our k. That k/1 can be explained in the first 
place by the presumed fact that with increasing wealth earned 
Income is less and less important; in the second place perhaps 
by the fact that income from shares which dominates for the 
larger wealth does not contain the undistributed profits. 
Since the Pareto coefficient for wealth was 1,38 in 1962/63, 
we should expect it to be 2,20 for income on the basis of 
the theory. In reality it was 2,08. A better correspondence 
is hardly to be expected, since the independence condition holds 
only very approximately. 
A similar calculation with Swedish data /20/ gives apparently very 
bad results, although the regression of income on wealth is linear. 
To take an examples For married couples, both taxed, in 1971, the re 
gression coefficient of income on wealth is 0,49, the Pareto coeffi 
cient for income ought thus to be 3,4, but it is in reality 2,5. 
/ The explanation is that the standard deviation of income increases 
/ with wealth (from 0,3 to 0,4 in the highest wealth class). This 
produced a thinning out of the tall of the income distribution, thus 
leading to a smaller Pareto coefficient than would otherwise obtain. 
The effect of increasing standard deviation is actually the same 
as that of a steepening of the regression line of income on wealth.
	        

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Steindl, J. (1975). Konvolut Wealth and Income Distribution 2.
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