2007/07 | LEM Working Paper Series | |
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On the Pareto Type III Distribution |
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Giulio Bottazzi |
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Keywords | ||
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Pareto Distribution, Fat Tails, Power Law Distribution, Zipf Law
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JEL Classifications | ||
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C1, C6, C8
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Abstract | ||
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This short note analyzes the distributional properties of Pareto Type
III random variables. We introduce a three parameters version of the
orignal two parameters distribution proposed by Pareto and derive both
the density and the characteristic function. The analytic expression
of the inverse distribution function is also obtained, together with a
simple series expansion of its moments of any order. Finally, we
propose a simple statistical exercise designed to show the increased
reliability of the Pareto Type III distribution in describing
asymptotically dumped power-like behaviors.
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Downloads | ||
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