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The weak Pareto law and regular variation in the tails

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  • Krämer, Walter
  • Ziebach, Thorsten

Abstract

We show that the weak Pareto law, as used to characterize the tail behaviour of income distributions, implies regularly varying tail probabilities, but that the reverse implication does not hold. We also establish implications among other versions of the weak Pareto law.

Suggested Citation

  • Krämer, Walter & Ziebach, Thorsten, 2002. "The weak Pareto law and regular variation in the tails," Technical Reports 2002,47, Technische Universität Dortmund, Sonderforschungsbereich 475: Komplexitätsreduktion in multivariaten Datenstrukturen.
    • Handle: RePEc:zbw:sfb475:200247
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    References listed on IDEAS

    as
    1. Merkies, Arnold H. Q. M. & Steyn, Ivo J., 1993. "Income distribution, Pareto laws and regular variation," Economics Letters, Elsevier, vol. 43(2), pages 177-182.
    2. Esteban, Joan M, 1986. "Income-Share Elasticity and the Size Distribution of Income," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(2), pages 439-444, June.
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    Cited by:

    1. Helton Saulo & Roberto Vila & Giovanna V. Borges & Marcelo Bourguignon, 2022. "Parametric quantile regression for income data," Papers 2207.06558, arXiv.org.
    2. Helton Saulo & Roberto Vila & Giovanna V. Borges & Marcelo Bourguignon & Víctor Leiva & Carolina Marchant, 2023. "Modeling Income Data via New Parametric Quantile Regressions: Formulation, Computational Statistics, and Application," Mathematics, MDPI, vol. 11(2), pages 1-25, January.

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    More about this item

    Keywords

    Pareto law; regular variation; tail probabilities;
    All these keywords.

    JEL classification:

    • C19 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Other
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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