Category

Number of Access this item:1,262（2024-04-23 17:03 Counts）

Identifier to cite or link to this item: https://hdl.handle.net/10086/23253

Link to primary information 

File Format Size Views Description
cover_23253 pdf
0101209201 pdf 800 KB 920

Item Information

Output File

Title
A Two Factor Model of Income Distribution Dynamics
Creator
Creator Name
Nirei, Makoto Nirei, Makoto
楡井, 誠 楡井, 誠
Affiliation
Affiliation Name
Carleton University
Creator Name
Souma, Wataru Souma, Wataru
Affiliation
Affiliation Name
National Institute of Information and Communications Technology
Key Word
Pareto distribution
Gibrat's law
tax returns
reflected multiplicative process
JEL
D31
Abstract
This paper analyzes empirical income distributions and proposes a simple stochastic model to explain the stationary distribution and deviations from it. Using the individual tax returns data in the U.S. and Japan for 40 years, we rst summarize the shape of income distribution by an exponential decay up to about the 90th percentile and a power decay for the top 1 percent. We then propose a minimal stochastic process of labor and asset income to reproduce the empirical characteristics. In particular, the Pareto exponent is derived analytically and matched with empirical statistics.
Description
The definitive version is available at onlinelibrary.wiley.com
Publisher
Wiley-Blackwell
International Association for Research in Income and Wealth
Issued Date
2007-09
Language
English(eng)
Resource Type
journal article
Version Type
AM
Is Version OfRelation -
Related Identifier
DOI
  10.1111/j.1475-4991.2007.00242.x
ISSN
0034-6586
NCID
AA00378051
Source Title
Review of Income and Wealth
Volume Number
53
Issue Number
3
Page Start
440
Page End
459
Appears in Collections
010a Journal Articles　=　雑誌掲載論文
URL
https://hdl.handle.net/10086/23253