Nirei, Makoto; Souma, Wataru - In: Review of Income and Wealth 53 (2007) 3, pp. 440-459
This paper analyzes empirical income distributions and proposes a simple stochastic model to explain the stationary distribution and deviations from it. Using the individual tax returns data in the U.S. and Japan for 40 years, we first summarize the shape of the income distribution by an...