A maximum relative entropy principle for distribution of personal inc.Ome with derivations of several known inc.Ome distributions

Abstract

A subjective income x∗ (x) is defined as a general function of real income x and of income functional or occupational distributions of income, both in respect of pay rates and shares of total income were discussed by Adam Smith, Ricardo, and Marx at considerable length (Ranadive 1978). Functional income data is much easier to collect than personal income data, but the latter becomes important to collect in consumer-oriented societies