On the Measurement of Functional Income Distribution

Marco Ranaldi ()
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Marco Ranaldi: Centre d'Economie de la Sorbonne et Paris School of Economics, https://sites.google.com/view/marcoranaldi

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: This study aims to develop a methodological architecture, which sheds light on the structure of functional income classes. A functional income class is here defined as a group of individuals whose income, at the aggregate level, is simultaneously fueled by different factor shares, in specific propositions. A new index that captures the distribution of functional income among groups of people is proposed: the Functional Income Distribution Index(If ), which will take various mathematical forms throughout the article. It is shown how the simplest version of the If is closely connected to the Gini Index, and how some other properties of the coefficient can be further derived. After a first methodological examination, a brief empirical analysis test the If

Keywords: Factor Shares; Functional Income; Inequality; Statistical Methodology (search for similar items in EconPapers)
JEL-codes: C43 E25 (search for similar items in EconPapers)
Date: 2016-07
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Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:16051

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