κ-generalized statistics in personal income distribution

Fabio Clementi, Mauro Gallegati and G. Kaniadakis

The European Physical Journal B: Condensed Matter and Complex Systems, 2007, vol. 57, issue 2, 187-193

Abstract: Starting from the generalized exponential function $\exp_{\kappa}(x)=(\sqrt{1+\kappa^{2}x^{2}}+\kappa x)^{1/\kappa}$ , with exp 0 (x)=exp (x), proposed in reference [G. Kaniadakis, Physica A 296, 405 (2001)], the survival function P > (x)=exp κ (-βx α ), where x∈R + , α,β>0, and $\kappa\in[0,1)$ , is considered in order to analyze the data on personal income distribution for Germany, Italy, and the United Kingdom. The above defined distribution is a continuous one-parameter deformation of the stretched exponential function P > 0 (x)=exp (-βx α ) to which reduces as κ approaches zero behaving in very different way in the x→0 and x→∞ regions. Its bulk is very close to the stretched exponential one, whereas its tail decays following the power-law P > (x)∼(2βκ) -1/κ x -α/κ . This makes the κ-generalized function particularly suitable to describe simultaneously the income distribution among both the richest part and the vast majority of the population, generally fitting different curves. An excellent agreement is found between our theoretical model and the observational data on personal income over their entire range. Copyright EDP Sciences/Società Italiana di Fisica/Springer-Verlag 2007

Keywords: 02.50.Ng Distribution theory and Monte Carlo studies, 02.60.Ed Interpolation; curve fitting, 89.65.Gh Economics; econophysics, financial markets, business and management, (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
http://hdl.handle.net/10.1140/epjb/e2007-00120-9 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: k-Generalized Statistics in Personal Income Distribution (2007)
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:spr:eurphb:v:57:y:2007:i:2:p:187-193

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/10051

DOI: 10.1140/epjb/e2007-00120-9

Access Statistics for this article

The European Physical Journal B: Condensed Matter and Complex Systems is currently edited by P. Hänggi and Angel Rubio

More articles in The European Physical Journal B: Condensed Matter and Complex Systems from Springer, EDP Sciences
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().