Colombi-type Pareto models for income

摘要

The famous Italian economist Colombi (1990) introduced the Pareto log-normal distribution as a model for income. This novel distribution is obtained by taking the product of two independent random variables, one Pareto distributed and the other log-normal distributed, i.e. by compounding the Pareto and log-normal distributions In this paper, we derive a comprehensive collection of income distributions that extend Colombi's work. We also derive several properties of the income distributions, including the Lorenz curve and the Gini coefficient We expect that this work could serve as a useful reference and lead to improved income modeling.