The power-law tail exponent of income distributions

Fabio Clementi, T. Di Matteo and Mauro Gallegati

Physica A: Statistical Mechanics and its Applications, 2006, vol. 370, issue 1, 49-53

Abstract: In this paper we tackle the problem of estimating the power-law tail exponent of income distributions by using the Hill's estimator. A subsample semi-parametric bootstrap procedure minimizing the mean squared error is used to choose the power-law cutoff value optimally. This technique is applied to personal income data for Australia and Italy.

Keywords: Personal income; Pareto's index; Hill's estimator; Bootstrap (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (20)

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Related works:
Working Paper: The Power-law Tail Exponent of Income Distributions (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:370:y:2006:i:1:p:49-53

DOI: 10.1016/j.physa.2006.04.027

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