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Wealth Modeling of Polish Households Using Statistical Methods

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  • Maciej Jagielski
  • Ryszard Kutner

Abstract

The aim of this work is to analyze the empirical cumulative layouts of annual household income in Poland between 2000 and 2006. Data were collected from the Central Statistical Office. The layouts were compared with predictions of Pareto rights, Law of Proportionate Effect, generalized Lotka-Volterra model and models of collisions. It turned out that middle class and wealthy Polish households are described very well by the cumulative distributions of Pareto, which differ by the value of the Pareto exponent. On the other hand the income of poor households is described by a cumulative log-normal distribution. To describe the poor andmiddle class households the generalized Lotka-Volterra model can be used, which provides the theoretical interpretation of the level of individual households.

Suggested Citation

  • Maciej Jagielski & Ryszard Kutner, 2011. "Wealth Modeling of Polish Households Using Statistical Methods," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 25.
    • Handle: RePEc:eko:ekoeko:25_154
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    File URL: http://ekonomia.wne.uw.edu.pl/ekonomia/getFile/716
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    References listed on IDEAS

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