Polynomial distribution can be applied to dynamic systems in certain situations. Macroeconomic systems characterized by economic variables such as income and wealth can be modelled similarly using polynomials. We extend our previous work to data regarding income from a more diversified pool of countries, which contains developed countries with high income, developed countries with middle income, developing and underdeveloped countries. Also, for the first time we look at the applicability of polynomial distribution to expenditure (consumption). Using cumulative distribution function, we found that polynomials are applicable with a high degree of success to the distribution of income to all countries considered without significant differences. Moreover, expenditure data can be fitted very well by this polynomial distribution. We considered a distribution to be robust if the values for coefficient of determination are higher than 90%. Using this criterion, we decided the degree for the polynomials used in our analysis by trying to minimize the number of coefficients, respectively first or second degree. Lastly, we look at possible correlation between the values from coefficient of determination and Gini coefficient for disposable income.
| Published in | American Journal of Modern Physics (Volume 3, Issue 2) |
| DOI | 10.11648/j.ajmp.20140302.18 |
| Page(s) | 88-92 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2014. Published by Science Publishing Group |
Dynamic Systems, Polynomial Distribution, Mean Income, Cumulative Distribution Function, Coefficient of Determination, Expenditure (Consumption)
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APA Style
Elvis Oltean. (2014). An Econophysical Approach of Polynomial Distribution Applied to Income and Expenditure. American Journal of Modern Physics, 3(2), 88-92. https://doi.org/10.11648/j.ajmp.20140302.18
ACS Style
Elvis Oltean. An Econophysical Approach of Polynomial Distribution Applied to Income and Expenditure. Am. J. Mod. Phys. 2014, 3(2), 88-92. doi: 10.11648/j.ajmp.20140302.18
AMA Style
Elvis Oltean. An Econophysical Approach of Polynomial Distribution Applied to Income and Expenditure. Am J Mod Phys. 2014;3(2):88-92. doi: 10.11648/j.ajmp.20140302.18
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Download@article{10.11648/j.ajmp.20140302.18,
author = {Elvis Oltean},
title = {An Econophysical Approach of Polynomial Distribution Applied to Income and Expenditure},
journal = {American Journal of Modern Physics},
volume = {3},
number = {2},
pages = {88-92},
doi = {10.11648/j.ajmp.20140302.18},
url = {https://doi.org/10.11648/j.ajmp.20140302.18},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajmp.20140302.18},
abstract = {Polynomial distribution can be applied to dynamic systems in certain situations. Macroeconomic systems characterized by economic variables such as income and wealth can be modelled similarly using polynomials. We extend our previous work to data regarding income from a more diversified pool of countries, which contains developed countries with high income, developed countries with middle income, developing and underdeveloped countries. Also, for the first time we look at the applicability of polynomial distribution to expenditure (consumption). Using cumulative distribution function, we found that polynomials are applicable with a high degree of success to the distribution of income to all countries considered without significant differences. Moreover, expenditure data can be fitted very well by this polynomial distribution. We considered a distribution to be robust if the values for coefficient of determination are higher than 90%. Using this criterion, we decided the degree for the polynomials used in our analysis by trying to minimize the number of coefficients, respectively first or second degree. Lastly, we look at possible correlation between the values from coefficient of determination and Gini coefficient for disposable income.},
year = {2014}
}
TY - JOUR T1 - An Econophysical Approach of Polynomial Distribution Applied to Income and Expenditure AU - Elvis Oltean Y1 - 2014/04/10 PY - 2014 N1 - https://doi.org/10.11648/j.ajmp.20140302.18 DO - 10.11648/j.ajmp.20140302.18 T2 - American Journal of Modern Physics JF - American Journal of Modern Physics JO - American Journal of Modern Physics SP - 88 EP - 92 PB - Science Publishing Group SN - 2326-8891 UR - https://doi.org/10.11648/j.ajmp.20140302.18 AB - Polynomial distribution can be applied to dynamic systems in certain situations. Macroeconomic systems characterized by economic variables such as income and wealth can be modelled similarly using polynomials. We extend our previous work to data regarding income from a more diversified pool of countries, which contains developed countries with high income, developed countries with middle income, developing and underdeveloped countries. Also, for the first time we look at the applicability of polynomial distribution to expenditure (consumption). Using cumulative distribution function, we found that polynomials are applicable with a high degree of success to the distribution of income to all countries considered without significant differences. Moreover, expenditure data can be fitted very well by this polynomial distribution. We considered a distribution to be robust if the values for coefficient of determination are higher than 90%. Using this criterion, we decided the degree for the polynomials used in our analysis by trying to minimize the number of coefficients, respectively first or second degree. Lastly, we look at possible correlation between the values from coefficient of determination and Gini coefficient for disposable income. VL - 3 IS - 2 ER -
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