Estimation of income distribution and detection of subpopulations: an explanatory model

Emmanuel Flachaire and Olivier Nunez
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Olivier Nunez: UC3M - Universidad Carlos III de Madrid [Madrid]

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Abstract: Empirical evidence, obtained from nonparametric estimation of the income distribution, exhibits strong heterogeneity in most populations of interest. It is common, therefore, to suspect that the population is composed of several homogeneous subpopulations. Such an assumption leads us to consider mixed income distributions whose components feature the distributions of the incomes of a particular homogeneous subpopulation. A model with mixing probabilities that are allowed to vary with exogenous individual variables that characterize each subpopulation is developed. This model simultaneously provides a flexible estimation of the income distribution, a breakdown into several subpopulations and an explanation of income heterogeneity.

Keywords: income distribution; mixture models (search for similar items in EconPapers)
Date: 2007-04
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00175923
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Citations: View citations in EconPapers (11)

Published in Computational Statistics and Data Analysis, 2007, 51 (7), pp.3368-3380. ⟨10.1016/j.csda.2006.07.004⟩

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Related works:
Journal Article: Estimation of the income distribution and detection of subpopulations: An explanatory model (2007)
Working Paper: Estimation of income distribution and detection of subpopulations: an explanatory model (2007)
Working Paper: Estimation of income distribution and detection of subpopulations: an explanatory model (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:halshs-00175923

DOI: 10.1016/j.csda.2006.07.004

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