Abstract:
A number of distributions have been used to describe income distribution. This paper estimates eleven distributions (GB, GB1, GB2, B, B1, B2, GG, BR3, BR12, GA, and LN) using data from eight countries (Australia, Canada, Israel, Norway, Russia, Taiwan, United Kingdom, and the United States) for three different years. Relative performance of each distribution is considered as well its performance over time for each country. In addition, a measure of income inequality is also estimated, and its relationship to these distributions is discussed. Some suggestions for further study in this field are also discussed.