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Parametric representation of the top of income distributions: Options, historical evidence, and model selection
Journal of Economic Surveys ( IF 4.142 ) Pub Date : 2021-06-14 , DOI: 10.1111/joes.12435
Vladimir Hlasny 1
Affiliation  

Empirical distributions of top incomes suffer from statistical problems affecting the measurement of inequality and its trend. Researchers and practitioners have been increasingly noting parametric regularities across income distributions and turning to parametric functions to approximate or supplement the observed distributions, both for descriptive purposes and for correcting distributional statistics derived from data. The proliferation of distinct branches of modeling literature has highlighted the need to compare the alternative modeling options, and develop systematic tools to discriminate between them. This paper reviews the state of methodological and empirical knowledge regarding the adoptable parametric functions, and lists references and statistical programs allowing practitioners to apply these models to microdata in household surveys and administrative registers, or grouped-records data from national accounts statistics. Implications for modeling the distributions of other economic outcomes including consumption and wealth, and incomes below the topmost tail, are drawn. For incomes, a handful of distribution functions hold promise for modeling the top tails based on theoretical and empirical properties—namely the extreme values distributions, the generalized Pareto, the Singh–Maddala and the generalized beta type 2. Understanding these functions in relation to other commonly invoked alternatives is a contribution of this review.

中文翻译:

收入分配顶部的参数表示:选项、历史证据和模型选择

最高收入的经验分配受到影响不平等衡量及其趋势的统计问题的影响。研究人员和从业人员越来越多地注意到收入分配中的参数规律,并转向参数函数来近似或补充观察到的分布,既用于描述目的,也用于校正从数据得出的分布统计。建模文献不同分支的激增凸显了比较替代建模选项的必要性,并开发系统工具来区分它们。本文回顾了关于可采用参数函数的方法论和经验知识的状态,并列出参考资料和统计程序,允许从业者将这些模型应用于住户调查和行政登记中的微观数据,或国民账户统计中的分组记录数据。绘制了对其他经济结果的分布建模的影响,包括消费和财富,以及最顶端尾部以下的收入。对于收入,少数分布函数有望基于理论和经验属性对顶部尾部进行建模——即极值分布、广义帕累托、辛格-马达拉和广义 beta 类型 2。了解这些函数与其他函数的关系常用替代品是本次审查的一项贡献。绘制了对其他经济结果的分布建模的影响,包括消费和财富,以及最顶端尾部以下的收入。对于收入,少数分布函数有望基于理论和经验属性对顶部尾部进行建模——即极值分布、广义帕累托、辛格-马达拉和广义 beta 类型 2。了解这些函数与其他函数的关系常用替代品是本次审查的一项贡献。绘制了对其他经济结果的分布建模的影响,包括消费和财富,以及最顶端尾部以下的收入。对于收入,少数分布函数有望基于理论和经验属性对顶部尾部进行建模——即极值分布、广义帕累托、辛格-马达拉和广义 beta 类型 2。了解这些函数与其他函数的关系常用替代品是本次审查的一项贡献。
更新日期:2021-06-14
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