A new $\\kappa$-deformed parametric model for the size distribution of wealth

It has been pointed out by Patriarca et al. (2005) that the power-law tailed equilibrium distribution in heterogeneous kinetic exchange models with a distributed saving parameter can be resolved as a mixture of Gamma distributions corresponding to particular subsets of agents. Here, we propose a new...

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Bibliographic Details
Published inIDEAS Working Paper Series from RePEc
Main Authors Adams Vallejos, Ormazabal, Ignacio, Borotto, Felix A, Astudillo, Hernan F
Format Paper
LanguageEnglish
Published St. Louis Federal Reserve Bank of St. Louis 01.01.2018
Subjects
Wealth distribution
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Summary:It has been pointed out by Patriarca et al. (2005) that the power-law tailed equilibrium distribution in heterogeneous kinetic exchange models with a distributed saving parameter can be resolved as a mixture of Gamma distributions corresponding to particular subsets of agents. Here, we propose a new four-parameter statistical distribution which is a $\\kappa$-deformation of the Generalized Gamma distribution with a power-law tail, based on the deformed exponential and logarithm functions introduced by Kaniadakis(2001). We found that this new distribution is also an extension to the $\\kappa$-Generalized distribution proposed by Clementi et al. (2007), with an additional shape parameter $\\nu$, and properly reproduces the whole range of the distribution of wealth in such heterogeneous kinetic exchange models. We also provide various associated statistical measures and inequality measures.