Information matrix test An application using Pareto’s original income distribution data

This article attempts to apply and interpret the correspondent Identification Matrix test (White, 1982) for a Pareto type I distribution. One of the most cited datasets used by Pareto, England’s income distribution in 1843 and in 1879, is used. Our results suggest that an alternative hypothesis, one of random coefficients cannot be accepted, i.e., we are not able to reject the hypothesis that the empirical income of England is a Pareto type I distribution.

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Year of publication:	2010
Authors:	Mattos, Enlinson ; Ponczek, Vladimir P.
Published in:	Journal of Income Distribution. - Economics Department. - Vol. 19.2010, 1, p. 20-32
Publisher:	Economics Department
Subject:	income distribution \| misspecification hypothesis test \| Pareto Distribution

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Extent:	application/pdf
Type of publication:	Article
Classification:	C01 - Econometrics ; C12 - Hypothesis Testing
Source:	RePEc - Research Papers in Economics

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