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Proportionality-Induced Distribution Laws

  • Thomas Kämpke
  • Franz Josef Radermacher
Chapter
  • 644 Downloads
Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 679)

Abstract

The differential equation for Lorenz curves which leads to the one-parametric Pareto distribution, see Chap.  7, can be considered as proportionality law. This law relates the Lorenz density to the income share of certain population segments and allows a variety of variations and relaxations leading to a functional rather than differential equation. One kind of variation of the differential equation allows to raise income share to powers and other variations replace proportionality factors by proportionality functions. Many of the equations can be solved in closed form leading to a system of (new) types of one-parametric Lorenz curves.

Some of the other proportionality-induced Lorenz curves better fit empirical data than the Pareto distribution.

Keywords

Pareto Distribution Lorenz Curve Income Share Large Income Homogenous Differential Equation 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. Diamond P, Saez E (2011) The case for a progressive tax: from basic research to policy recommendations. J Econ Perspect 25:165–190CrossRefGoogle Scholar
  2. Rinne H (2008) Taschenbuch der Statistik. Harri Deutsch, FrankfurtGoogle Scholar
  3. Wolfram—Alpha\(\circledR\) computational knowledge engine. http://www.wolframalpha.com/ (Webservice, 2014)

Copyright information

© Springer International Publishing Switzerland 2015

Authors and Affiliations

  • Thomas Kämpke
    • 1
  • Franz Josef Radermacher
    • 2
  1. 1.Research Institute for Applied Knowledge Processing (FAW/n)UlmGermany
  2. 2.Department of Computer ScienceUniversity of UlmUlmGermany

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