The [formula omitted]-generalized distribution: A new descriptive model for the size distribution of incomes

Abstract

This paper proposes the κ -generalized distribution as a model for describing the distribution and dispersion of income within a population. Formulas for the shape, moments and standard tools for inequality measurement–such as the Lorenz curve and the Gini coefficient–are given. A method for parameter estimation is also discussed. The model is shown to fit extremely well the data on personal income distribution in Australia and in the United States.