Empirical Economics

, Volume 39, Issue 2, pp 559–591 | Cite as

A model of personal income distribution with application to Italian data

  • Fabio Clementi
  • Mauro Gallegati
  • Giorgio Kaniadakis
Original Paper

Abstract

This article proposes the κ-generalized distribution as a descriptive model for the distribution and dispersion of income within a population based on the deformed exponential and logarithm functions recently introduced by Kaniadakis (Phys A 296:405–425, 2001; Phys Rev E 66:056125, 2002; Phys Rev E 72:036108, 2005). Expressions are reported which facilitate the analysis of the associated moments and various tools for the measurement of inequality. An empirical application, including a comparison of alternative distributions, is made to household income data in Italy for the years 1989 to 2006.

Keywords

Income distribution Income inequality κ-generalized distribution 

JEL Classification

C16 D31 

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Copyright information

© Springer-Verlag 2009

Authors and Affiliations

  • Fabio Clementi
    • 1
  • Mauro Gallegati
    • 1
  • Giorgio Kaniadakis
    • 2
  1. 1.Department of EconomicsPolytechnic University of MarcheAnconaItaly
  2. 2.Department of PhysicsPolytechnic University of TurinTorinoItaly

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