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A New Approach to Personal Income Distribution

Atushi Ishikawa·Tadao Suzuki·Masashi Tomoyose
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Abstract

The results of R^2 dynamical random surface model (2-dimensional quantum gravity with a $R^2$ term) are applied to explain the personal income distribution. A scale invariance exists if there is not the $R^2$ term in the action. The R^2 term provides a typical scale and breaks the scale invariance explicitly in the low and middle income range. A new distribution, Weibull distribution, is deduced from the action analytically in the low income range, and a consistent fitting is obtained in the whole income range. Also, we show that the lognormal distribution in the middle income range can be understood in this framework.

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Atushi Ishikawa, Tadao Suzuki, Masashi Tomoyose. 2002-03-20. A New Approach to Personal Income Distribution. https://arxiv.org/abs/cond-mat/0203399

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