Full text: Konvolut Wealth and Income Distribution 1

15 
V\ 
or conditional distribution of income, therefore includes 
MMft income here, The regression of property owners’ total 
income on their wealth can be studied on the basis of 
Dutch data '■ (fig. 5). The regression is linear, and homo- 
scedastic; the correlation coefficient is 0,5* the re 
gression coofficient is 0.G2Si0.004 (data for 1962/63). 
Tho regression coefficient corresponds to our k, Shot 
<1 can bo explained in the first place by the presumed 
fact that with increasing wealth earned income is less 
and loss important; in the second pi co perhaps by the 
fact that income from shares which dominates for the 
larger wealth does notjk ant a in 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 2.03. A better correspondence 
is hardly to be expected, since the wealth distribution at 
that time has been distorted by the stock exchange boom 
(see /l /). 2 ) 
A similar calculation with Swedish data gives very un 
satisfactory results, although the regression line is 
linear and homoscedastic. This may be explained by the 
guosr: that the classification of income (which stops at 
^ D* J 
,.n .a.* 
at * 
1 >See / 1/ 
2) 
Since the holding of shares increases strongly with the 
^0 ^(T ^ , z-'t
	        

Note to user

Dear user,

In response to current developments in the web technology used by the Goobi viewer, the software no longer supports your browser.

Please use one of the following browsers to display this page correctly.

Thank you.