Maria Grazia Pittau
Sapienza Universita' di Roma
Stability of household income in European countries in the 1990
Abstract
This paper explores the patterns of change in the annual
household income in the countries of the European Community
during the years 1994-1999.
The income is modeled by mixtures of multivariate log-normal
distributions, and the mixture components are interpreted as
representing one subpopulation with steady increments and others
with various levels of volatility.
The method is extended to models for a combination of log-normal
and categorical variables.
An index of income stability is defined for the countries.
Throughout, we emphasize graphical summaries of the results.
Computational Statistics and Data Analysis 51, 1363-1384,
2006.