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The distribution of personal income: Revisited
Author(s) -
McDonald James B.,
Mantrala Anand
Publication year - 1995
Publication title -
journal of applied econometrics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.878
H-Index - 99
eISSN - 1099-1255
pISSN - 0883-7252
DOI - 10.1002/jae.3950100208
Subject(s) - log normal distribution , econometrics , distribution (mathematics) , gamma distribution , mathematics , statistics , mathematical analysis
In a recent paper, Majumder and Chakravarty (1990) propose a four‐parameter model which they find provides a better fit to some income data than the lognormal, gamma, Singh‐Maddala, Dagum, and generalized beta of the second kind (GB2) distributions. This note (1) demonstrates that the model proposed by Majumder and Chakravarty is a reparameterization of the GB2 and (2) reconciles the corresponding contradictory empirical findings reported by Majumder and Chakravarty.