Gabaix, Xavier; Ibragimov, Rustam - In: Journal of Business & Economic Statistics 29 (2011) 1, pp. 24-39
Despite the availability of more sophisticated methods, a popular way to estimate a Pareto exponent is still to run an OLS regression: log(Rank) = <italic>a</italic> - <italic>b</italic> log(Size), and take <italic>b</italic> as an estimate of the Pareto exponent. The reason for this popularity is arguably the simplicity and robustness of this...
