USA Income Distribution Counter-Business-Cyclical Trend

Bijan Bidabad

doi:10.46281/amfbr.v4i2.346

Bijan Bidabad Professor, Economics and Chief Islamic Banking Advisor, Bank Melli, Iran

DOI: https://doi.org/10.46281/amfbr.v4i2.346

Keywords: Income Distribution, Lorenz Curve, L1 norm statistics, Business Cycle

Abstract

In this paper, the L₁ norm of continuous functions and corresponding continuous estimation of regression parameters are defined. The continuous L₁ norm estimation problems of linear one and two parameters models are solved. We proceed to use the functional form and parameters of the probability distribution function of income to exactly determine the L₁ norm approximation of the corresponding Lorenz curve of the statistical population under consideration. U.S. economic data used to estimate income distribution. An interesting finding of these calculations is that the distribution of income obeys counter-wise business cycles fluctuations. This finding is a new area for research in the realm of the theory and application of income distribution and business cycles interrelationship.

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