The Personal Distribution of Income

Steindl, Josef

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Document type:: Works

Collection:: Josef Steindl Collection

Title:: The Personal Distribution of Income

Author:: Steindl, Josef

Scope:: Typoskript, 24 Seiten, mit handschriftlichen Ergänzungen bei mathematischen Formeln

Year of publication:: 1990

Source material date:: [vermutlich um 1990]

Language:: English

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

Shelfmark:: S/M.52.11

Access:: Free access

13 Although we do not really know anything about these higher moments we shall nevertheless try to use the above function and proceed in the same way as before by a mixture of the conditional distribution: q(Y) = p 00 f( fcw + y Q - y) e -aw dw = J o = c 1/ K 0(0-4, ) expt-a/^ (y-y Q ) } for #w > y-y Q q(y) = o for *w < y-y Q . (9) The result is now that the Pareto coefficient of the wealth distribution is reproduced in the income distribution, but with a larger Pareto coefficient (since tC < 1 ) . This is exactly what has to be explained (income distributions are in fact more "equal" than the wealth distributions,empirically,in so far as they show a larger Pareto coefficient).The particular shape of the rate of return distribution has no influence on the tail of the income distribution as long as it fulfills the independence conditions mentioned. Concerning the restriction *Cw > y-y Q it should be remarked that we are free to shift the coordinate system to any y Q we choose so as to make the above condition valid,with no consequence except that the conclusion about the Pareto tail will be confined to incomes in excess of y o*

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