Comparative Analysis of Income Distributions in the European Union and the United States

• Authors: M. Jagielski , R. Duczmal , R. Kutner
• Languages of publication: EN

Abstracts

EN

We prove that the most rafined approach - our extension of the Yakovenko et al. model - is a universal in the sense that it well describes both household incomes in the European Union and the individual incomes in the United States for all income social classes. This prove was based on our comparative study of various kinds of incomes. The study constitutes a basis for the finding of an impact of the recent world-wide financial crisis on the volatility of various temporary Pareto exponents and on other parameters of the model.

Keywords

EN

89.20.-a; 89.65.Gh

Discipline

• 89.20.-a: Interdisciplinary applications of physics
• 89.65.Gh: Economics; econophysics, financial markets, business and management(for economic issues regarding production and use of renewable energy, see 88.05.Lg)

• Publisher: Institute of Physics, Polish Academy of Sciences
• Journal: Acta Physica Polonica A
• Year: 2015
• Volume: 127
• Issue: 3A
• Pages: A-75-A-77

Dates

published

2015-03

Contributors

author

M. Jagielski

• Faculty of Physics, University of Warsaw, Pasteura 5, PL-02093 Warszawa, Poland
• Center for Polymer Studies and Department of Physics, Boston University, Boston, Massachusetts 02215, USA

author

R. Duczmal

• Faculty of Physics, University of Warsaw, Pasteura 5, PL-02093 Warszawa, Poland

author

R. Kutner

• Faculty of Physics, University of Warsaw, Pasteura 5, PL-02093 Warszawa, Poland

References

• [1] V. Pareto, Cours d'économie politique, L'Université de Lausanne, 1897
• [2] P. Richmond, S. Hutzler, R. Coelho, P. Repetowicz, A review of empirical studies and models of income distributions in society, in: Econophysics & Sociophysics: Trends & Perspectives, B.K. Chakrabarti, A. Chakraborti, A. Chatterjee, WILEY-VCH, Weinheim 2006, p. 129
• [3] V. M. Yakovenko, J.B. Rosser, Rev. Mod. Phys. 81, 1703 (2009), doi: 10.1103/RevModPhys.81.1703
• [4] A. Banerjee, V.M. Yakovenko, New J. Phys. 12, 075032 (2010), doi: 10.1088/1367-2630/12/7/075032
• [5] R. Gibrat, Les inégalités économiques: applications aux inégalités des richesses, à la concentration des entreprises... d'une loi nouvelle, la loi de l'effet proportionnel, Recueil Sirey, Paris 1931
• [6] M. Kalecki, Econometrica 13, 161 (1945), doi: 10.2307/1907013
• [7] M. Armatte, Mathématiques et sciences humaines 129, 5 (1995)
• [8] J. Sutton, J. Econ. Lit. 35, 40 (1997)
• [9] S. Solomon, P. Richmond, Physica A 299, 188 (2001), doi: 10.1016/S0378-4371(01)00295-3
• [10] P. Richmond, S. Solomon, Int. J. Mod. Phys. C 12, 333 (2001), doi: 10.1142/S0129183101001754
• [11] S. Solomon, P. Richmond, EPJ B 27, 257 (2002), doi: 10.1140/epjb/e20020152
• [12] D.W. Huang, Phys. Rev. E 69, 057103 (2004), doi: 10.1103/PhysRevE.69.057103
• [13] A. Banerjee, V.M. Yakovenko, T. Di Matteo, Physica A 370, 54 (2006), doi: 10.1016/j.physa.2006.04.023
• [14] F. Clementi, T. Di Matteo, M. Gallegati, Physica A 370, 49 (2006), doi: 10.1016/j.physa.2006.04.027
• [15] F. Clementi, T. Di Matteo, M. Gallegati, G. Kaniadakis, Physica A 387, 3201 (2008), doi: 10.1016/j.physa.2008.01.109
• [16] F. Clementi, M. Gallegati, Paretos Law of Income Distribution: Evidence for Germany, the United Kingdom, and the United States, in: Econophysics of Wealth Distributions, A. Chatterjee, B.K. Chakrabarti, S. Yarlagadda, Springer, Italy 2005, p. 3
• [17] F. Clementi, M. Gallegati, G. Kaniadakis, J. Stat. Mech. Theor. Exp. 2009, P02037 (2009), doi: 10.1088/1742-5468/2009/02/P02037
• [18] A. Drăgulescu, V.M. Yakovenko, EPJ B 17, 723 (2000), doi: 10.1007/s100510070114
• [19] A. Drăgulescu, V.M. Yakovenko, Physica A 299, 213 (2001), doi: 10.1016/S0378-4371(01)00298-9
• [20] A. Drăgulescu, V.M. Yakovenko, EPJ B 20, 585 (2001), doi: 10.1007/PL00011112
• [21] M. Levy, S. Solomon, Physica A 242, 90 (1997), doi: 10.1016/S0378-4371(97)00217-3
• [22] P. Łukasiewicz, A. Orłowski, Physica A 344, 146 (2004), doi: 10.1016/j.physa.2004.06.106
• [23] M. Nirei, W. Souma, Rev. Income Wealth 53, 440 (2007), doi: 10.1111/j.1475-4991.2007.00242.x
• [24] P.K. Rawlings, D. Reguera, H. Reiss, Physica A 343, 643 (2004), doi: 10.1016/j.physa.2004.06.152
• [25] N. Scafetta, S. Picozzi, B.J. West, Quantitative Finance 4, 353 (2004), doi: 10.1088/1469-7688/4/3/010
• [26] A.C. Silva, V.M. Yakovenko, Europhys. Lett. 69, 304 (2005), doi: 10.1209/epl/i2004-10330-3
• [27] V.M. Yakovenko, A.C. Silva, Two-class Structure of Income Distribution in the USA: Exponential Bulk and Power-law Tail, in: Econophysics of Wealth Distributions, A. Chatterjee, B.K. Chakrabarti, S. Yarlagadda, Springer, Italy 2005, p. 15
• [28] F. Clementi, M. Gallegati, G. Kaniadakis, J. Stat. Mech. Theor. Exp. 2012, P12006 (2012), doi: 10.1088/1742-5468/2012/12/P12006
• [29] A. Orłowski P. Łukasiewicz, K. Karpio, Acta Phys. Pol. A 121, B82 (2012)
• [30] M. Jagielski, R. Kutner, M. Pęczkowski, Acta Phys. Pol. A 121, B47 (2012)
• [31] M. Jagielski, R. Kutner, Acta Phys. Pol. A 123, 538 (2013), doi: 10.12693/APhysPolA.123.538
• [32] M. Jagielski, R. Kutner, Physica A 392, 2130 (2013), doi: 10.1016/j.physa.2013.01.028
• [33] M. Jagielski, R. Kutner, Acta Phys. Pol. B Proc. Suppl. 7, 307 (2014), doi: 10.5506/APhysPolBSupp.7.307
• [34] Statistics on income, social inclusion and living conditions, Eurostat, 2013, EUSILC UDB 2007 - version 3 of March 2010
• [35] The World's Billionaires, Forbes, 2013, http://www.forbes.com/billionaires/
• [36] Internal Revenue Service, 2013, http://www.irs.gov

Identifiers

DOI

10.12693/APhysPolA.127.A-75