MECHANICAL MODEL of PERSONAL INCOME DISTRIBUTION

Ivan Kitov

MPRA Paper from University Library of Munich, Germany

Abstract: A microeconomic model is developed, which accurately predicts the shape of personal income distribution (PID) in the United States and the evolution of the shape over time. The underlying concept is borrowed from geo-mechanics and thus can be considered as mechanics of income distribution. The model allows the resolution of empirical and definitional problems associated with personal income measurements. It also serves as a firm fundament for definitions of income inequality as secondary derivatives from personal income distribution. It is found that in relative terms the PID in the US has not been changing since 1947. Effectively, the Gini coefficient has been almost constant during the last 60 years, as reported by the Census Bureau.

Keywords: personal income; modelling; mechanics; the US (search for similar items in EconPapers)
JEL-codes: C81 D01 D31 E01 O12 (search for similar items in EconPapers)
Date: 2009-02-15
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Related works:
Working Paper: Mechanical Model of Personal Income Distribution (2009)
Working Paper: Mechanical model of personal income distribution (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:13422

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