Some Generalized Functions for the Size Distribution of Income

Abstract

Many distributions have been used as descriptive models for the size distribution of income. This paper considers two generalized beta distributions which include many of these models as special or limiting cases. These generalized distributions have not been used as models for the distribution of income and provide a unified method of comparing many models previously considered. Expressions are reported which facilitate parameter estimation and the analysis of associated means, variances, and various measures of inequality. The distributions considered are fit to U.S. family income and their relative performance is compared.