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Is the wealth of the world’s billionaires not Paretian?

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  • Capehart, Kevin W.

Abstract

According to previous studies that applied a popular goodness-of-fit test, the wealth of the world’s billionaires does not follow a Pareto distribution. The test applied by those studies assumes that wealth is measured without error, yet, if different sources of data on the wealthiest people in the world are compared, then wealth appears to be measured with error. This paper shows that the conclusions drawn from the goodness-of-fit test can change when the test is modified to account for measurement errors.

Suggested Citation

  • Capehart, Kevin W., 2014. "Is the wealth of the world’s billionaires not Paretian?," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 395(C), pages 255-260.
    • Handle: RePEc:eee:phsmap:v:395:y:2014:i:c:p:255-260
    DOI: 10.1016/j.physa.2013.09.026
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    References listed on IDEAS

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    Cited by:

    1. Rafael Wildauer & Jakob Kapeller, 2019. "Rank correction: a new approach to differential nonresponse in wealth survey data," Working Papers PKWP1921, Post Keynesian Economics Society (PKES).
    2. Li, Cong & Xu, Hedong & Fan, Suohai, 2020. "Synergistic effects of self-optimization and imitation rules on the evolution of cooperation in the investor sharing game," Applied Mathematics and Computation, Elsevier, vol. 370(C).
    3. Xu, Hedong & Fan, Suohai & Tian, Cunzhi & Xiao, Xinrong, 2019. "Evolutionary investor sharing game on networks," Applied Mathematics and Computation, Elsevier, vol. 340(C), pages 138-145.
    4. Frank A. Cowell & Philippe Kerm, 2015. "Wealth Inequality: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 29(4), pages 671-710, September.
    5. Westermeier, Christian, 2016. "Estimating top wealth shares using survey data - An empiricist's guide," Discussion Papers 2016/21, Free University Berlin, School of Business & Economics.
    6. Jakob Kapeller & Rafael Wildauer, 2019. "Rank Correction: A New Approach to Differential Non-Response in Wealth Survey Data," ICAE Working Papers 101, Johannes Kepler University, Institute for Comprehensive Analysis of the Economy.

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