The power-law tail exponent of income distributions
نویسندگان
چکیده
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 minimizing 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. r 2006 Elsevier B.V. All rights reserved.
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