scholarly journals Hierarchy and the power-law income distribution tail

2018 ◽  
Vol 1 (2) ◽  
pp. 471-491 ◽  
Author(s):  
Blair Fix
Keyword(s):  
Income Distribution ◽  
Power Law ◽  
Distribution Tail

scholarly journals Hierarchy and the Power-Law Income Distribution Tail

2018 ◽  
Author(s):  
Blair Fix
Keyword(s):  
Income Distribution ◽  
Power Law ◽  
Large Scale ◽  
Hierarchical Organization ◽  
Power Law Distribution ◽  
Top Incomes ◽  
The Us ◽  
The Hierarchical Structure ◽  
Distribution Tail ◽  
Firm Hierarchy

What explains the power-law distribution of top incomes? This paper tests the hypothesis that it is firm hierarchy that creates the power-law income distribution tail. Using the available case-study evidence on firm hierarchy, I create the first large-scale simulation of the hierarchical structure of the US private sector. Although not tuned to do so, this model reproduces the power-law scaling of top US incomes. I show that this is purely an effect of firm hierarchy. This raises the possibility that the ubiquity of power-law income distribution tails is due to the ubiquity of hierarchical organization in human societies.

scholarly journals Income distribution in the Colombian economy from an econophysics perspective

2016 ◽  
Vol 35 (69) ◽  
pp. 691-707
Author(s):  
Hernando Quevedo Cubillos ◽  
María N. Quevedo
Keyword(s):  
Income Distribution ◽  
Economic System ◽  
Power Law ◽  
Gibbs Distribution ◽  
Economic Systems ◽  
Second Phase ◽  
Equilibrium Thermodynamic ◽  
Thermodynamic Models ◽  
Density Distributions ◽  
Pareto Distributions

Recently, in econophysics, it has been shown that it is possible to analyze economic systems as equilibrium thermodynamic models. We apply statistical thermodynamics methods to analyze income distribution in the Colombian economic system. Using the data obtained in random polls, we show that income distribution in the Colombian economic system is characterized by two specific phases. The first includes about 90% of the interviewed individuals, and is characterized by an exponential Boltzmann-Gibbs distribution. The second phase, which contains the individuals with the highest incomes, can be described by means of one or two power-law density distributions that are known as Pareto distributions.

scholarly journals Power Law Behavior and Tail Modeling on Low Income Distribution

2019 ◽  
Vol 7 (3) ◽  
pp. 70-77 ◽  
Author(s):  
Nurulkamal Masseran ◽  
Lai Hoi Yee ◽  
Muhammad Aslam Mohd Safari ◽  
Kamarulzaman Ibrahim
Keyword(s):  
Income Distribution ◽  
Power Law ◽  
Low Income

scholarly journals PARETO'S LAW FOR INCOME OF INDIVIDUALS AND DEBT OF BANKRUPT COMPANIES

Fractals ◽  
2000 ◽  
Vol 08 (03) ◽  
pp. 293-300 ◽  
Author(s):  
HIDEAKI AOYAMA ◽  
WATARU SOUMA ◽  
YUICHI NAGAHARA ◽  
MITSUHIRO P. OKAZAKI ◽  
HIDEKI TAKAYASU ◽  
...  
Keyword(s):  
Probability Distribution ◽  
Income Distribution ◽  
Power Law ◽  
Income Tax ◽  
Model Building ◽  
Fiscal Year ◽  
Pareto Exponent ◽  
Pareto’S Law ◽  
Distribution Of Income

We analyze the distribution of income and income tax of individuals in Japan for the fiscal year 1998. From the rank-size plots, we find that the accumulated probability distribution of both data obey a power law with a Pareto exponent very close to -2. We also present an analysis of the distribution of the debts owed by bankrupt companies from 1997 to March 2000, which is consistent with a power law behavior with a Pareto exponent equal to -1. This power law is the same as that of the income distribution of companies. Possible implications of these findings for model building are discussed.

scholarly journals Heavy Tails in Queueing Systems: Impact of Parallelism on Tail Performance

2013 ◽  
Vol 50 (1) ◽  
pp. 127-150 ◽  
Author(s):  
Bo Jiang ◽  
Jian Tan ◽  
Wei Wei ◽  
Ness Shroff ◽  
Don Towsley
Keyword(s):  
Power Law ◽  
Heavy Tails ◽  
Queueing Systems ◽  
Splitting Scheme ◽  
Exact Asymptotics ◽  
Delay Distribution ◽  
Power Law Exponent ◽  
Distribution Tail

In this paper we quantify the efficiency of parallelism in systems that are prone to failures and exhibit power law processing delays. We characterize the performance of two prototype schemes of parallelism, redundant and split, in terms of both the power law exponent and exact asymptotics of the delay distribution tail. We also develop the optimal splitting scheme which ensures that split always outperforms redundant.

Power-law behaviors in high income distribution

2006 ◽  
pp. 344-348 ◽  
Author(s):  
Sasuke Miyazima ◽  
Keizo Yamamoto
Keyword(s):  
Income Distribution ◽  
Power Law ◽  
High Income

Gibrat's Law for (All) Cities: Comment

2009 ◽  
Vol 99 (4) ◽  
pp. 1672-1675 ◽  
Author(s):  
Moshe Levy
Keyword(s):  
Income Distribution ◽  
Size Distribution ◽  
Power Law ◽  
Empirical Distribution ◽  
Wealth Distribution ◽  
City Size ◽  
Power Law Distribution ◽  
Gibrat’S Law ◽  
Gibrat's Law ◽  
City Size Distribution

Jan Eeckhout (2004) reports that the empirical city size distribution is lognormal, consistent with Gibrat's Law. We show that for the top 0.6 percent of the largest cities, the empirical distribution is dramatically different from the lognormal, and follows a power law. This top part is extremely important as it accounts for more than 23 percent of the population. The empirical hybrid lognormal-power-law distribution revealed may be characteristic of other key distributions, such as the wealth distribution and the income distribution. This distribution is not consistent with a simple Gibrat proportionate effect process, and its origin presents a puzzle yet to be answered. (JEL R11, R12, R23)

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