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 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.
Original language | English |
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Pages (from-to) | 49-53 |
Number of pages | 5 |
Journal | Physica A: Statistical Mechanics and its Applications |
Volume | 370 |
Issue number | 1 |
DOIs | |
Publication status | Published - 1 Oct 2006 |