The Pareto law of incomes—an explanation and an extension

By W. Reed. 2003

248 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/500edba081b6f42d8a199790791f2c5b57c78876

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Citations in the corpus

The Pareto, Zipf and other power laws (2001, background): “In this case current incomes can be represented as the product of a double Pareto random variable with an independent lognormal random variable, and will exhibit power law behaviour in both tails (for details see Reed, 2000 a).”
Power law tails in the Italian personal income distribution (2004, unknown): “From our dataset we obtain the 1[6] suggests that a Pareto law may hold also for lower incomes, yielding a so-called double Pareto-lognormal distribution, that is a distribution with a lognormal body and a double Pareto tail.”
The double power law in income distribution: Explanations and evidence (2012, background): “The one proposed by Alfarano et al. (2012) in the context of the firm profit rates (returns on assets) is mean-reverting, whereas the other proposed independently by Gabaix (1999) and Reed (2001, 2003) is a unit root process.”
Skewed Wealth Distributions: Theory and Empirics (2018, background): “51 Reed (2003) generalizes the initial condition to allow the initial state w 0 to be a log-normally distributed random variable.”
Tail index estimation: quantile driven threshold selection (2016, methodology): “Other applications use a single cross-section to analyze power law behavior in areas such as city size or income distribution, as seen in Gabaix (1999) and Reed (2003).”
The Matthew effect in empirical data (2014, background): “Although there is no single origin of power-law behaviour—many theories and models have in fact been proposed to explain it [9–27]—a strong case can be made for the Matthew effect being responsible in many cases.”
City Age and City Size (2014, background): “As is shown by Reed (2002, 2003), the DPLN as given in (1) is then the solution for this density function f(S) (see the appendix for details).”
Surge Pricing Solves the Wild Goose Chase (2017, unknown): “We assume that willingness to pay has a double Pareto lognormal (Reed, 2003; Reed and Jorgensen, 2004) distribution with parameters α = 3, β = 1.”
The Double Pareto-Lognormal Distribution—A New Parametric Model for Size Distributions (2004, background): “Examples of the fit of the dPlN (with plots) to various earnings/income distributions are presented in Reed (2003). It was to explain such distributions (and Pareto’s law of Incomes) that the dPLN (as the state of a killed GBM) was developed.”