An Analysis of Relationship among Income Inequality, Poverty, and Income Mobility, Based on Distribution Functions
Table 5
Parameter evaluation and goodness of fittest of three Distribution Functions.
Lognormal
Theoretical Pr()
Actual Pr()
ΔPr = ② − ①
Chi-square value
2005
10.2317
0.6050
0.0457
0.0485
0.0029
203
2006
10.3418
0.5975
0.0291
0.0325
0.0034
252
2007
10.4867
0.5954
0.0160
0.0209
0.0049
273
2008
10.6275
0.6164
0.0108
0.0148
0.0041
258
2009
10.7312
0.6022
0.0058
0.0088
0.0030
220
2010
10.8300
0.6014
0.0035
0.0068
0.0033
466
Log-Logistic
Theoretical Pr()
② Actual Pr()
ΔPr = ② − ①
Chi-square value
2005
27753
2.8731
0.0506
0.0485
−0.0021
101
2006
30973
2.9147
0.0357
0.0325
−0.0032
100
2007
35950
2.9256
0.0231
0.0209
−0.0022
90
2008
41488
2.8115
0.0180
0.0148
−0.0032
128
2009
46017
2.8712
0.0123
0.0088
−0.0035
177
2010
51002
2.8978
0.0088
0.0068
−0.0020
110
Weibull
Theoretical Pr()
② Actual Pr()
ΔPr = ② − ①
Chi-square value
2005
1.5924
37296
0.0157
0.0485
0.0328
6603
2006
1.6485
41295
0.0920
0.0325
−0.0595
6657
2007
1.7350
47333
0.0652
0.0209
−0.0443
5721
2008
1.7678
54349
0.0489
0.0148
−0.0341
4666
2009
1.8543
59448
0.0360
0.0088
−0.0272
4157
2010
1.9338
65093
0.0264
0.0068
−0.0196
3394
Note. The theoretical Pr() is proportion of families with the annual income less than 10 thousand yuans in the total households, which is calculated in line with relative Distribution Function; the actual Pr() is the proportion of urban families with annual income less than 10 thousand yuans in the total urban households in reality. The data is from China City (town) Life and Price Statistics Yearbook.
