An Analysis of Household Income in Poland and Slovakia Based on Selected Income Models

Abstract

Research background: Studies of income distributions may focus on describing empirical distributions by theoretical models. This approach can be useful for many reasons. When choosing a statistical model, it is important both to find out a theoretical distribution function that would characterize empirical frequency distribution and to choose suitable methods to calculate the parameters of the model. In the literature, there are proposals for various types of mathematical functions. Very high accuracy with empirical distribution is characteristic for Dagum and log-normal models. In 2010 Zenga proposed a new three-parameter model for economic size distribution which possesses interesting statistical properties.

Keywords

• income distribution
• dagum model
• log-normal model
• zenga model
• gini index
• atkinson index
• sen index
• kakwani index
• c1
• c10
• c13
• c15