 On the Measurement of Functional Income DistributionMarco Ranaldi ()
Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne Abstract: The present study seeks to investigate the issue of income composition from a theoretical perspective. In order to make this possible, I introduce the concept of sources polarization among individuals (or groups), together with a novel methodological framework whereby further examining this subject. Such a framework hinges on two major elements. The first element is a new way to decompose individual and aggregate income. The second is a specific measure, called Functional Income Distribution Index, directly derived from the framework, which summarizes with one number the polarization of income sources across the population. I illustrate several mathematical properties of the index, among which a singular connection with the Gini coefficient. In addition to that, I carry out a first empirical application of the methodology, which focuses on the case of the US during the 20th century. I find strong evidence that income sources are no longer polarized among rich and poor as in the past Keywords: Functional Income; Income Distribution; Inequality; Polarization of Sources; Statistical Methodology (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:16051r Access Statistics for this paper More papers in Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne Contact information at EDIRC. |
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