The Power-law Tail Exponent of Income Distributions
arXiv:physics/0603061 · doi:10.1016/j.physa.2006.04.027
Abstract
In this paper we tackle the problem of estimating the power-law tail exponent of income distributions by using the Hill's estimator. A subsample semi-parametric bootstrap procedure minimising the mean squared error is used to choose the power-law cutoff value optimally. This technique is applied to personal income data for Australia and Italy.
Latex2e v1.6; 8 pages with 3 figures; in press (Physica A)