A New Model Of Income Distribution: The Pareto-Lognormal Distribution

Colombi, Roberto

doi:10.1007/978-3-642-84250-4_2

Cited by 28 publications

(19 citation statements)

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“…For the UK sample, the percentage was much greater, (22% of all households). 20 Literature on micro econometric models highlights that a lognormal distribution approximates very accurately the true distribution of low categories of wages (see Brown 1976 andColombi 1990). 21 We used an algorithm of utility maximization in order to find the level of w at which a household will offer a positive effort.…”

Section: Results Of the Simulations With Behavioral Reactionsmentioning

confidence: 99%

Micro-simulation and Normative Policy Evaluation: An Application to Some EU Tax Benefits Systems

Spadaro

2005

J Public Economic Theory

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In this work we explore the impact of alternative tax benefits systems on household welfare. The framework of our analysis is the theory of optimal taxation with the distribution of potential wages replaced by the distribution of household abilities. The latter has been calculated by inversion of the household's utility maximization problem. This methodology has then been implemented in order to compare the tax benefits systems of France and the United Kingdom. We have employed a behavioral micro-simulation model that has been applied on samples extracted from the "Households Budget Survey 1989" of INSEE and from the "Family Expenditure Survey" of ONS. Copyright 2005 Blackwell Publishing Inc..

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Section: Results Of the Simulations With Behavioral Reactionsmentioning

confidence: 99%

Micro-simulation and Normative Policy Evaluation: An Application to Some EU Tax Benefits Systems

Spadaro

2005

J Public Economic Theory

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“…Both the Gini coefficient of imputed wealth and the top wealth shares are likely to be higher than the corresponding statistics computed for actual wealth. Colombi (1990) shows analytically that if the distribution of net returns is log-normal and wealth is Pareto, then the Gini coefficient of w ˆ it , G( w ˆ ), exceeds the Gini coefficient of actual wealth, G(w). Moreover, G( w ˆ ) is monotonically increasing in the standard deviation of individual returns to wealth.…”

Section: The Capitalization Methodsmentioning

confidence: 98%

Heterogeneity in Returns to Wealth and the Measurement of Wealth Inequality

Fagereng

Guiso

Malacrino

et al. 2016

American Economic Review

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Lacking a long time series on the assets of the very wealthy, Saez and Zucman (2015) use US tax records to obtain estimates of wealth holdings by capitalizing asset income from tax returns. They document marked upward trends in wealth concentration. We use data on tax returns and actual wealth holdings from tax records for the whole Norwegian population to test the robustness of the methodology. We document that measures of wealth based on the capitalization approach can lead to misleading conclusions about the level and the dynamics of wealth inequality if returns are heterogeneous and even moderately correlated with wealth.

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“…First, we include the indices for the Pareto‐lognormal (Colombi, ) and for the double Pareto‐lognormal distribution, developed by Reed () and studied further by Reed and Jorgensen (). These indices were obtained by Hajargasht and Griffiths ().…”

Section: Parametric Income Modelsmentioning

confidence: 99%

The Theil Indices in Parametric Families of Income Distributions—A Short Review

Sarabia

Jordá

Remuzgo

2016

Review of Income and Wealth

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The Theil indices (Theil, ) are widely used measures for studying the degree of concentration and inequality in size income distributions. Their property of decomposability makes these indices especially useful in applied economic analysis. This paper is a synthetic review of the Theil indices for the most important and popular parametric income distributions. Extensions to higher dimensions are sketched.

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A New Model Of Income Distribution: The Pareto-Lognormal Distribution

Cited by 28 publications

References 1 publication

Micro-simulation and Normative Policy Evaluation: An Application to Some EU Tax Benefits Systems

Micro-simulation and Normative Policy Evaluation: An Application to Some EU Tax Benefits Systems

Heterogeneity in Returns to Wealth and the Measurement of Wealth Inequality

The Theil Indices in Parametric Families of Income Distributions—A Short Review

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