Growth and fluctuations of personal income

Yoshi Fujiwara, Wataru Souma, Hideaki Aoyama, Taisei Kaizoji () and Masanao Aoki

Physica A: Statistical Mechanics and its Applications, 2003, vol. 321, issue 3, 598-604

Abstract: Pareto's law states that the distribution of personal income obeys a power-law in the high income range. Its dynamical nature has been little studied hitherto, mostly due to the lack of empirical work. Using an exhaustive list of taxpayers in Japan for two consecutive years, when the economy was relatively stable, we report here that the law is a consequence from universal distribution of the growth rate of income and approximate time-reversal symmetry of incomes in the successive years. We also find a relation between positive and negative growth rates that shows good agreement with the data.

Keywords: Pareto's law; Personal income; Growth-rate; Multiplicative process; Econophysics (search for similar items in EconPapers)
Date: 2003
References: View complete reference list from CitEc
Citations: View citations in EconPapers (39)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0378437102016631
Full text for ScienceDirect subscribers only. Journal offers the option of making the article available online on Science direct for a fee of $3,000

Related works:
Working Paper: Growth and Fluctuations of Personal Income (2002)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:321:y:2003:i:3:p:598-604

DOI: 10.1016/S0378-4371(02)01663-1

Access Statistics for this article

Physica A: Statistical Mechanics and its Applications is currently edited by K. A. Dawson, J. O. Indekeu, H.E. Stanley and C. Tsallis

More articles in Physica A: Statistical Mechanics and its Applications from Elsevier
Bibliographic data for series maintained by Catherine Liu ().