Open AccessUSA Income Distribution Counter-Business-Cyclical Trend
Author(s) -
Bijan Bidabad
Publication year - 2019
Publication title -
american finance and banking review
Language(s) - English
Resource type - Journals
eISSN - 2576-1234
pISSN - 2576-1226
DOI - 10.46281/amfbr.v4i2.346
Subject(s) - lorenz curve , econometrics , norm (philosophy) , mathematics , distribution (mathematics) , realm , income distribution , economics , statistics , mathematical economics , mathematical analysis , geography , economic inequality , inequality , political science , gini coefficient , law , archaeology
In this paper, the L1 norm of continuous functions and corresponding continuous estimation of regression parameters are defined. The continuous L1 norm estimation problems of linear one and two parameters models are solved. We proceed to use the functional form and parameters of the probability distribution function of income to exactly determine the L1 norm approximation of the corresponding Lorenz curve of the statistical population under consideration. U.S. economic data used to estimate income distribution. An interesting finding of these calculations is that the distribution of income obeys counter-wise business cycles fluctuations. This finding is a new area for research in the realm of the theory and application of income distribution and business cycles interrelationship.