Application of Zenga’s distribution to a panel survey on household incomes of European Member States
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In this paper Zenga’s distribution is applied to 114 household incomes distributions from a panel
survey conducted by Eurostat. Previous works showed the good behaviour of the model to describe
income distributions and analyzed the possibility to impose restrictions on the parametric space so
that the fitted models comply with some characteristics of interest of the samples. This work is the
first application of the model on a wide number of distributions, showing that it can be used to describe
incomes distributions of several countries. Maximum likelihood method on grouped data and
methods based on the minimization of three different goodness of fit indexes are used to estimate
parameters. The restriction that imposes the equivalence between the sample mean and the expected
value of the fitted model is also considered. It results that the restriction should be used and the
changes in fitting are analyzed in order to suggest which estimation method use jointly to the restriction.
A final section is devoted to the direct proof that Zenga’s distribution has Paretian right-tail.
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