Applying Generalized Pareto Curves to Inequality Analysis

Article dans une revue: A generalized Pareto curve is defined as the curve of inverted Pareto coefficients b(p), where b(p) is the ratio between average income or wealth above rank p and the p-th quantile. We present this concept and show how it can be used to better estimate distributions, especially from tax tabulations. By providing a simple decomposition of top shares, we discuss how studying inverted Pareto coefficients can improve the understanding of inequality dynamics. We also show how it helps to better analyze wealth and income concentrations along the distribution, using data for France, Spain, the United States, and China.

Auteur(s)

Thomas Blanchet, Bertrand Garbinti, Jonathan Goupille-Lebret, Clara Martínez-Toledano

Revue
  • American Economic Review Papers and Proceedings
Date de publication
  • 2018
Pages
  • 114-118
Version
  • 1
Volume
  • 108