The exponential Pareto model with hidden income processes: Evidence from Chile

Díaz, Juan; Cubillos, Pablo Gutiérrez; Griñen, Pablo Tapia

doi:10.1016/j.physa.2020.125196

Cited by 7 publications

(3 citation statements)

References 27 publications

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“…La presente investigación pone en duda las conclusiones más optimistas a las que arriban los estudios de la evolución de la desigualdad basados exclusivamente en datos de la Casen (Azevedo et al 2013; Lustig, Lopez-Calva y Ortiz-Juarez 2013; Sapelli 2016; Parro y Reyes 2017; Urzúa 2018). Por otra parte, está en línea con los estudios para Chile que han usado datos administrativos de impuestos o correcciones de Cuentas Nacionales, y que reportan una evolución de la desigualdad estable o incluso al alza durante la primera década de 2000 (Díaz, Gutiérrez y Tapia 2021;Flores et al 2019;Flores 2021b;López, Figueroa y Gutiérrez 2016). 3 A diferencia de estos últimos, el presente artículo entrega estimaciones a nivel de hogares, lo que permite su comparación con las estadísticas oficiales de desigualdad en el país.…”

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Una nueva estimación de la desigualdad de ingresos en Chile

Larrañaga

Echecopar

Grau

2022

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Este artículo cuestiona la práctica común de estimar la evolución de la desigualdad de ingresos en Chile utilizando como única fuente de información la Encuesta de Caracterización Socioeconómi- ca Nacional (Casen). El planteamiento es que los ingresos capturados por la Casen no solo son una fracción de los ingresos totales, sino que tal fracción no es estable en el tiempo. Para abordar este potencial sesgo, en este artículo utilizamos distintas fuentes de información con el fin de corregir los datos de la Casen: (i) las Cuentas Nacionales, que informan del total de ingresos que se generan en la economía cada año; y (ii) registros administrativos, que informan de la distribución de ingresos entre los individuos, sin estar afectos al subreporte que caracteriza a la información recolectada por encuestas. Nuestros resultados muestran que la desigualdad medida con los ingresos corregidos no disminuye en el período 2003 a 2017, a diferencia de la tendencia decreciente que muestran los datos de ingresos no corregidos de la Casen.

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Una nueva estimación de la desigualdad de ingresos en Chile

Larrañaga

Echecopar

Grau

2022

cep

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“…Because slaves had no property right of personal income, this evidence implies that slave-based societies might undergo a Pareto distribution of the total population. As the time came to the end of the 20th century, it had been found that the income structures of market-economy countries around the world uniformly exhibited a two-class pattern [19][20][23][24][25][26][27][28][29][30][31][32][33] : the majority of populations obeyed an exponential distribution and only the remaining (richest) part followed a Pareto distribution.…”

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confidence: 99%

Exponential or Pareto: towards an evolution of equal opportunity

Tao¹

2021

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Pareto distribution and exponential distribution are related by the generalized Pareto distribution, which has been proposed to describe the income structure of the total population. The underlying mechanism for driving the Pareto distribution has been known as the Matthew effect of income accumulation. Today, the Pareto distribution has been observed universally in the richest class (1%~3% of populations); however, this distribution could dominate a larger proportion of populations when the investigation dated back to Renaissance Europe, Hungarian medieval society, and ancient Egypt. By contrast, the underlying mechanism for driving exponential income distribution is due to the equal opportunity of market competition, which radically differs from the Matthew effect. Here, we empirically find that, during the last 40 years, the income structures of different market-economy countries uniformly exhibit a two-class pattern, in which the great majority of populations obeys an exponential distribution and only the remaining (richest) part follows a Pareto distribution. In particular, we empirically show how the income structure in China evolved to an exponential distribution after the market-oriented economic reformation. The finding of a larger proportion of populations evolving to an exponential income distribution may reveal a potential trend of human civilization towards equal opportunity.

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“…Because slaves have no property right of personal income, this evidence implies that slave-based societies might undergo a Pareto distribution of the total population. As the time came to the end of the 20th century, it had been found that the income structure of market-economy countries around the world uniformly exhibited a two-class pattern [19][20][23][24][25][26][27][28][29][30][31][32][33] : the great majority of populations obeyed an exponential distribution and only the remaining (richest) part followed a Pareto distribution. Empirical evidence had covered more than 66 countries 19 , ranging from Europe to Latin America, North America, and Asia.…”

mentioning

confidence: 99%

Exponential or Pareto: towards an evolution of equal opportunity

Tao

2021

Preprint

View full text Add to dashboard Cite

Pareto distribution and exponential distribution are related by the generalized Pareto distribution, which has been proposed to describe the income structure of the total population. The underlying mechanism for driving the Pareto distribution has been known as the Matthew effect of income accumulation. Today, the Pareto distribution has been observed universally in the richest class (1%~3% of populations); however, this distribution could dominate a larger proportion of populations when the investigation dated back to Renaissance Europe, Hungarian medieval society, and ancient Egypt. By contrast, the underlying mechanism for driving exponential distribution is due to the equal opportunity of market competition, which radically differs from the Matthew effect. Here, we empirically find that, during the last 40 years, the income structure of different market-economy countries uniformly exhibits a two-class pattern, in which a larger proportion of populations is evolving to an exponential distribution, while the Pareto distribution is squeezed into a fairly small proportion. In particular, we empirically show how the income structure of China evolved to an exponential distribution after the market-oriented economic reformation. The finding of a larger proportion of populations evolving to an exponential income distribution may reveal a potential trend of human civilization towards equal opportunity.

show abstract

The exponential Pareto model with hidden income processes: Evidence from Chile

Cited by 7 publications

References 27 publications

Una nueva estimación de la desigualdad de ingresos en Chile

Una nueva estimación de la desigualdad de ingresos en Chile

Exponential or Pareto: towards an evolution of equal opportunity

Exponential or Pareto: towards an evolution of equal opportunity

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