Mechanical Model of Personal Income Distribution

Details Mechanical Model of Personal Income Distribution Mechanical Model of Personal Income Distribution

2009-03-02

arxiv.org/abs/0903.0203v1

Economy

Quantitative Finance

Statistical Finance

Scientific paper

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.

Affiliated with

Also associated with

No associations

Rating

Mechanical Model of Personal Income Distribution does not yet have a rating. At this time, there are no reviews or comments for this scientific paper.

If you have personal experience with Mechanical Model of Personal Income Distribution, we encourage you to share that experience with our LandOfFree.com community. Your opinion is very important and Mechanical Model of Personal Income Distribution will most certainly appreciate the feedback.

Rate now

Comments { 0 }

Profile ID: LFWR-SCP-O-77538