1. Three-Part Model of Distribution of Household Incomes.
- Author
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ŁUKASIEWICZ, P., KARPIO, K., and ORŁOWSKI, A. J.
- Subjects
INCOME inequality ,INCOME ,PARETO distribution ,HOUSEHOLD budgets ,LOGNORMAL distribution - Abstract
Previous studies of Polish household budgets usually assumed two-part distributions of the incomes. Low and medium incomes have been approximated by a log-normal distribution. On the other hand high incomes have been described by the Pareto Type I model. In this paper we analyze cumulative distribution of Polish household incomes. We observe significant deviations from the log-normal model describing the lowest incomes. We propose a model which better describes the left end of the income distribution. Eventually we construct a distribution consisting of the three parts, which seems to be well suited to correctly describe the whole range of the incomes. We also investigate non-positive incomes and the relation between them and expenditures. [ABSTRACT FROM AUTHOR]
- Published
- 2020
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