Composite pareto distributions for modelling household income distribution in Malaysia
Composite Pareto distributions are flexible as the models allow for data to be described by two distributions: a Pareto distribution for the data above a threshold value and another separate distribution for data below the threshold value. It is noted in some previous literatures that the Paretian t...
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| Format: | Article |
| Language: | en |
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Penerbit Universiti Kebangsaan Malaysia
2021
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| Online Access: | http://journalarticle.ukm.my/17565/1/19.pdf http://journalarticle.ukm.my/17565/ https://www.ukm.my/jsm/malay_journals/jilid50bil7_2021/KandunganJilid50Bil7_2021.html |
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| _version_ | 1834433207282434048 |
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| author | Muhammad Hilmi Abdul Majid, Kamarulzaman Ibrahim, |
| author_facet | Muhammad Hilmi Abdul Majid, Kamarulzaman Ibrahim, |
| author_sort | Muhammad Hilmi Abdul Majid, |
| building | Tun Sri Lanang Library |
| collection | Institutional Repository |
| content_provider | Universiti Kebangsaan Malaysia |
| content_source | UKM Journal Article Repository |
| continent | Asia |
| country | Malaysia |
| description | Composite Pareto distributions are flexible as the models allow for data to be described by two distributions: a Pareto distribution for the data above a threshold value and another separate distribution for data below the threshold value. It is noted in some previous literatures that the Paretian tail behaviour can be observed in the distribution of Malaysian household income. In this paper, the composite Pareto models are fitted to the Malaysian household income data of several years. These fitted composite Pareto models are then compared to several univariate models for describing income distribution using pseudo-likelihood based AIC, BIC and Kolmogorov-Smirnov goodness-of-fit test. It is found that the income distributions in Malaysia can be best described by the lognormal-Pareto (II) model as compared to other candidate models. |
| format | Article |
| id | my-ukm.journal.17565 |
| institution | Universiti Kebangsaan Malaysia |
| language | en |
| publishDate | 2021 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| record_format | eprints |
| spelling | my-ukm.journal.175652021-11-15T03:44:47Z http://journalarticle.ukm.my/17565/ Composite pareto distributions for modelling household income distribution in Malaysia Muhammad Hilmi Abdul Majid, Kamarulzaman Ibrahim, Composite Pareto distributions are flexible as the models allow for data to be described by two distributions: a Pareto distribution for the data above a threshold value and another separate distribution for data below the threshold value. It is noted in some previous literatures that the Paretian tail behaviour can be observed in the distribution of Malaysian household income. In this paper, the composite Pareto models are fitted to the Malaysian household income data of several years. These fitted composite Pareto models are then compared to several univariate models for describing income distribution using pseudo-likelihood based AIC, BIC and Kolmogorov-Smirnov goodness-of-fit test. It is found that the income distributions in Malaysia can be best described by the lognormal-Pareto (II) model as compared to other candidate models. Penerbit Universiti Kebangsaan Malaysia 2021-07 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/17565/1/19.pdf Muhammad Hilmi Abdul Majid, and Kamarulzaman Ibrahim, (2021) Composite pareto distributions for modelling household income distribution in Malaysia. Sains Malaysiana, 50 (7). pp. 2047-2058. ISSN 0126-6039 https://www.ukm.my/jsm/malay_journals/jilid50bil7_2021/KandunganJilid50Bil7_2021.html |
| spellingShingle | Muhammad Hilmi Abdul Majid, Kamarulzaman Ibrahim, Composite pareto distributions for modelling household income distribution in Malaysia |
| title | Composite pareto distributions for modelling household income distribution in Malaysia |
| title_full | Composite pareto distributions for modelling household income distribution in Malaysia |
| title_fullStr | Composite pareto distributions for modelling household income distribution in Malaysia |
| title_full_unstemmed | Composite pareto distributions for modelling household income distribution in Malaysia |
| title_short | Composite pareto distributions for modelling household income distribution in Malaysia |
| title_sort | composite pareto distributions for modelling household income distribution in malaysia |
| url | http://journalarticle.ukm.my/17565/1/19.pdf http://journalarticle.ukm.my/17565/ https://www.ukm.my/jsm/malay_journals/jilid50bil7_2021/KandunganJilid50Bil7_2021.html |
| url_provider | http://journalarticle.ukm.my/ |