Clementi, Fabio; Di Matteo, Tiziana; Gallegati, M
In this paper we tackle the problem of estimating the power-law tail exponent of income distributions by using the Hill's estimator. A subsample semi-parametric bootstrap procedure minimizing the mean squared error is used to choose the power-law cutoff value optimally. This technique is applied to personal income data for Australia and Italy.
Items in Open Research are protected by copyright, with all rights reserved, unless otherwise indicated.