When estimating regional inequality, many economists use inequality indices weighted by the regions' shares in the national population. Although this approach is widespread, its adequacy has not received attention in the regional science literature. This paper proves that such approach is...

This study validates the microeconomic model defining the evolution of personal incomes in the U.S. Because of a large portion of population not reporting any income, any comprehensive modeling of the overall personal income distribution (PID) is complicated. Age-dependent PIDs allow overcoming...

This paper demonstrates quantitatively that modern estimates of income inequality based on the data reported by the IRS are not reliable. Principal problem of the IRS data consists in highly volatile income estimates in the low-end of personal income distribution. This volatility is likely...

We model the evolution of age-dependent personal income distribution and inequality as expressed by the Gini ratio. In our framework, inequality is an emergent property of a theoretical model we develop for the dynamics of individual incomes. The model relates the evolution of personal income to...

The Inequality Process (IP) is a particle system model similar to that of the Kinetic Theory of Gases. The IP is a parsimonious model of competition among people for wealth. The IP explains a wide scope of stable patterns in the distribution of personal income and wealth. Econophysicists have...

The paper discusses the ∪-shaped relationship between the equivalence scale n^ε and the Gini index instead of considering the equivalence scale’s relationship to the generalised entropy measures, which was studied by Coulter, et al. (1992). An end-point condition is given for the ∪-shaped...

This paper challenges the conventional wisdom that income and consumption inequality in Poland increased substantially following the economic transition in 1989–90. Using microdata from the 1985–92 Household Budget Surveys, we find that overall income inequality increased in 1989 but...

The aim of this work is to establish the personal income distribution from the elementary constituents of a free market; products of a representative good and agents forming the economic network. The economy is treated as a self-organized system. Based on the idea that the dynamics of an economy...

This paper empirically applies the statistical approaches to the phenomenon of polarization generated by Esteban, et al. (1999) and Gradín (2000) in order to quantify the evolution of the middle class in Mexico and the role of various household attributes in the formation of groups during...

This paper theoretically tries to explore the impact of politically motivated policy certainty of a government guided by the norm of equality of income on economic growth and also tries to examine its empirical validity on major Indian states. This paper lends credence to the fact that...