This work presents an empirical study of the evolution of the personal income distribution in Brazil. Yearly samples available from 1978 to 2005 were studied and evidence was found that the complementary cumulative distribution of personal income for 99% of the economically less favorable population is well represented by a Gompertz curve of the form G (x) = exp [ exp (A − Bx)], where x is the normalized individual income. The complementary cumulative distribution of the remaining 1% richest part of the population is well represented by a Pareto power law distribution P (x) = β x −α . This result means that similarly to other countries, Brazil's income distribution is characterized by a well defined two class system. The parameters A, B, α, β were determined by a mixture of boundary conditions, normalization and fitting methods for every year in the time span of this study. Since the Gompertz curve is characteristic of growth models, its presence here suggests that these patterns in income distribution could be a consequence of the growth dynamics of the underlying economic system. In addition, we found out that the percentage share of both the Gompertzian and Paretian components relative to the total income shows an approximate cycling pattern with periods of about 4 years and whose maximum and minimum peaks in each component alternate at about every 2 years. This finding suggests that the growth dynamics of Brazil's economic system might possibly follow a Goodwin-type class model dynamics based on the application of the Lotka-Volterra equation to economic growth and cycle. PACS. 89.65.Gh Economics; econophysics -89.20.-a Interdisciplinary applications of physics -87.23.Ge Dynamics of social systems -89.75.-k Complex systems -05.45.Df Fractals
This work analyzes the Gompertz-Pareto distribution (GPD) of personal income, formed by the combination of the Gompertz curve, representing the overwhelming majority of the economically less favorable part of the population of a country, and the Pareto power law, which describes its tiny richest part. Equations for the Lorenz curve, Gini coefficient and the percentage share of the Gompertzian part relative to the total income are all written in this distribution. We show that only three parameters, determined by linear data fitting, are required for its complete characterization. Consistency checks are carried out using income data of Brazil from 1981 to 2007 and they lead to the conclusion that the GPD is consistent and provides a coherent and simple analytical tool to describe personal income distribution data.
This work studies the Zipf Law for cities in Brazil. Data from censuses of 1970, 1980, 1991 and 2000 were used to select a sample containing only cities with 30,000 inhabitants or more. The results show that the population distribution in Brazilian cities does follow a power law similar to the ones found in other countries. Estimates of the power law exponent were found to be 2.22 ± 0.34 for the 1970 and 1980 censuses, and 2.26 ± 0.11 for censuses of 1991 and 2000. More accurate results were obtained with the maximum likelihood estimator, showing an exponent equal to 2.41 for 1970 and 2.36 for the other three years. : 89.75Da; 89.65.Cd; 05.45.Df PACS
This paper discusses the empirical validity of Goodwin's (1967) macroeconomic model of growth with cycles by assuming that the individual income distribution of the Brazilian society is described by the Gompertz-Pareto distribution (GPD). This is formed by the combination of the Gompertz curve, representing the overwhelming majority of the population (~99%), with the Pareto power law, representing the tiny richest part (~1%). In line with Goodwin's original model, we identify the Gompertzian part with the workers and the Paretian component with the class of capitalists. Since the GPD parameters are obtained for each year and the Goodwin macroeconomics is a time evolving model, we use previously determined, and further extended here, Brazilian GPD parameters, as well as unemployment data, to study the time evolution of these quantities in Brazil from 1981 to 2009 by means of the Goodwin dynamics. This is done in the original Goodwin model and an extension advanced by Desai et al. (2006). As far as Brazilian data is concerned, our results show partial qualitative and quantitative agreement with both models in the studied time period, although the original one provides better data fit. Nevertheless, both models fall short of a good empirical agreement as they predict single center cycles which were not found in the data. We discuss the specific points where the Goodwin dynamics must be improved in order to provide a more realistic representation of the dynamics of economic systems.Comment: 21 pages, 9 figures, 1 table, LaTeX. Minor changes to match corrected proofs. To appear in "Physica A
This paper discusses the empirical evidence of Tsallis statistical functions in the personal income distribution of Brazil. Yearly samples from 1978 to 2014 were linearized by the q-logarithm and straight lines were fitted to the entire range of the income data in all samples, producing a two-parameters-only single function representation of the whole distribution in every year. The results showed that the time evolution of the parameters is periodic and plotting one in terms of the other reveals a cycle mostly clockwise. It was also found that the empirical data oscillate periodically around the fitted straight lines with the amplitude growing as the income values increase. Since the entire income data range can be fitted by a single function, this raises questions on previous results claiming that the income distribution is constituted by a well defined two-classes-base income structure, since such a division in two very distinct income classes might not be an intrinsic property of societies, but a consequence of an a priori fitting-choice procedure that may leave aside possibly important income dynamics at the intermediate levels.
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