Work

Applying Generalized Pareto Curves to Inequality Analysis

Year: 2018

Type: article

Abstract: A generalized Pareto curve is defined as the curve of inverted Pareto coefficients b(p), where b(p) is the ratio between average income or wealth above rank p and the p-th quantile. We present this concept and show how it can be used to better estimate distributions, especially from tax tabulations. By providing a simple decomposition of top shares, we discuss how studying inverted Pareto coefficients can improve the understanding of inequality dynamics. We also show how it helps to better analyze wealth and income concentrations along the distribution, using data for France, Spain, the United States, and China.

Source: AEA Papers and Proceedings

DOI: 10.1257/pandp.20181075

Authors: Thomas Blanchet, Bertrand Garbinti, Jonathan Goupille-Lebret, Clara Martínez-Toledano

Institutions: Paris School of Economics, Banque de France, Centre de Recherche en Économie et Statistique, INSEAD

Language: English

Topic: Income, Poverty, and Inequality

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDG: Reduced inequalities

Open Access status: green

OpenAlex ID: W2804538601

FWCI: 8.106

Cites: 3

Cited by: 36

Related to: 10