The Personal Distribution of Income

Steindl, Josef

Bibliographic data

Works

Document type:: Works

Collection:: Josef Steindl Collection

Title:: The Personal Distribution of Income

Author:: Steindl, Josef

Scope:: Typoskript, 24 Seiten (23 Seiten auf Durchschlagpapier), mit zahlreichen handschriftlichen Anmerkungen und Anstreichungen

Year of publication:: 1972

Source material date:: August-September 1972

Language:: English

Note:: Unveröffentlichtes Typoskript.

Related work:: Steindl, Josef: The Personal Distribution of Income. In: Steindl, Josef: Economic Papers 1941-88. London: Macmillan, 1990, S. 356-371

Topic:: Stochastic processes and size distribution

Shelfmark:: S/M.52.8

Access:: Free access

12 income. In other words, the mean wealth in low income classes, as measured by the datajsrhich we have on the basis of tax assessments very strongly verstates the real mean wealth, and this the m re the 1 wer the income There is no pr of f c ' ree that a me curvilinearity w uld n t remain even if full wealth data were available. Th re may oven be the retical reas ns f r that, as will be h >m later. One reas n for linea ity >f the presumed full data sh >uld be menti-ned* It is rather queer that n n-linearity affects njy one of the regression lines and the other is perfectly linear. Only the truncati n f wealth data gives a plausible explanation of this c ntrast between the two regression linea. Empirical datai Holland and Sweden. The cross •.classification of wealth ad income available for the Netherlands and Sweden, will now be discussed it-the light of the theory contained in equation . ‘'Verification" can hardly be expected* The rate of return explanation can not nearly explain the income of prope ty owners fully, since a large part of it is earned income. Apart from other statistical difficulties it must be kept in mind that the ? rtto coefficient is always m re or less arbitrary, since it demands on the range of inc -r..e or wealth classes included when you measure it. -oren inconclusive data, h wevar, are better than speculating in the v id. An evidence n which I rely heavily is the iinear and fairly regul r character f the regression :.f ean inc > e n viealth ( fig 1). The regression c efficient ie in most cases armad 2/j, but it hay be as low as l/2 . Whether the higher moments of inc- e are independent of wealth is n>t easy t decide While the variance, in t e Swedish data, increases in the high r wealth classes this can plausibly be explained by the increase in the range of these classes ( the last but >ne wealth class has a range ab ht f ur times aa great as the lower wealth blasseo). The same fact is relevant for the comparis>n of the conditional distribution of inc me in the vari us wealth classes* They all have a 1 arete tail, the art to coefficient being markedly lower in the lost two or three wealth classes than in the other s. This, again, may be plausibly explained by the gre ter range of these high wealth size classes.

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