English

A New Approach to Personal Income Distribution

Statistical Mechanics 2008-12-02 v1 High Energy Physics - Theory General Finance

Abstract

The results of R^2 dynamical random surface model (2-dimensional quantum gravity with a R2R^2 term) are applied to explain the personal income distribution. A scale invariance exists if there is not the R2R^2 term in the action. The R^2 term provides a typical scale and breaks the scale invariance explicitly in the low and middle income range. A new distribution, Weibull distribution, is deduced from the action analytically in the low income range, and a consistent fitting is obtained in the whole income range. Also, we show that the lognormal distribution in the middle income range can be understood in this framework.

Keywords

Cite

@article{arxiv.cond-mat/0203399,
  title  = {A New Approach to Personal Income Distribution},
  author = {Atushi Ishikawa and Tadao Suzuki and Masashi Tomoyose},
  journal= {arXiv preprint arXiv:cond-mat/0203399},
  year   = {2008}
}

Comments

11 pages, 5 figures