Measuring Trends in U.S. Income Inequality: Theory and Applications: 459 (Lecture Notes in Economics and Mathematical Systems, 459) - Softcover

Ryu, Hang K.; Slottje, Daniel J.

Softcover

ISBN 10: 3540642293 ISBN 13: 9783540642299

Publisher: Springer, 1998

Synopsis

This book is the culmination of roughly seven years of joint research be­ tween us. We have both been interested in income inequality measurement for a considerably longer period of time. One author (Ryu) has a back­ ground in physics. While he was working on his Ph. D. in Physics at M. I. T. he became acquainted with Robert Solow. Professor Solow introduced Ryu to economics. After finishing his Ph. D. in physics, Ryu went on to the Uni­ versity of Chicago where Arnold Zellner guided him to a dissertation on using orthonormal basis and maximum entropy as estimation methods in econometric applications. The precise definition and examples of orthonormal basis (ONB) and maximum entropy (ME) methods will be given in the book. As it turns out, a natural application of these methods is the study of income distribution. Professor Zellner suggested that Ryu look at some of my joint work with Robert Basmann on functional forms of Lorenz curves as one starting place to do his own research. Ryu requested some of our data and asked for several of our papers with the express pur­ pose of introducing functional forms of Lorenz curves that Ryu felt would do a better job of approximating the empirical Lorenz curve. Thus, our first introduction was essentially one of Ryu trying to invent a better mousetrap. The interested reader can review the results given in Basmann et al. (1990) and Chapter Four of this book to see if Ryu succeeded.

About this title

Product Description

This book presents methods for analyzing trends in income inequality over time. The different innovative techniques which the authors have developed for the examination of changes in the size distribution of income, are for the first time described in a consistent and coherent fashion. The methods are based on the maximum entropy principle which is intuitively explained in the book. New ways to analyze Lorenz curves are introduced as well as new techniques for comparing income distributions (and the level of inequality inherent herein) both over time and across space. The book should be of interest to students, scholars and policy makers alike.

Edition details

• Publisher: Springer
• Publication date: 1998
• Language: English
• ISBN 10: 3540642293
• ISBN 13: 9783540642299
• Binding: Paperback
• Number of pages: 208