Pareto distribution

E382868

The Pareto distribution is a power-law probability distribution often used to model phenomena with heavy tails and strong inequality, such as wealth or city sizes.

All labels observed (4)

Label Occurrences
Pareto distribution canonical 6
Lomax distribution 1
Pareto law 1

How this entity was disambiguated

Statements (48)

Predicate Object
instanceOf continuous probability distribution
heavy-tailed distribution
power-law distribution
probability distribution
belongsToFamily one-parameter shape families
scale distributions
belongsToField econometrics
probability theory
statistical physics
statistics
cumulativeDistributionFunction F(x) = 1 - (x_m / x)^α for x ≥ x_m
hasApplication actuarial science
network traffic modeling
risk management
hasParameter scale parameter xm
shape parameter alpha
hasProperty infinite higher moments for small α
scale invariant tail
inequalityMeasure generates high Gini coefficients for small α
isHeavyTailed true
kurtosis high for small α
logTransform log X has shifted exponential distribution
mean E[X] = α x_m / (α - 1) for α > 1
meanExistsIf α > 1
median x_m 2^{1/α}
mode x_m
namedAfter Vilfredo Pareto
parameterConstraint x_m > 0
α > 0
probabilityDensityFunction f(x) = α x_m^α / x^{α+1} for x ≥ x_m
relatedConcept 80-20 rule
Pareto principle
relatedDistribution Pareto distribution self-linksurface differs
surface form: Lomax distribution

generalized Pareto distribution
power law
skewness positive
support x ≥ xm > 0
survivalFunction S(x) = (x_m / x)^α for x ≥ x_m
tailBehavior P(X > x) ∝ x^{-α}
type univariate distribution
usedToModel city sizes
file sizes in computer systems
income distribution upper tail
insurance claim sizes
sizes of human settlements
wealth distribution
variance Var(X) = α x_m^2 / ((α - 1)^2 (α - 2)) for α > 2
varianceExistsIf α > 2

How these facts were elicited

Referenced by (9)

Full triples — surface form annotated when it differs from this entity's canonical label.

Vilfredo Pareto knownFor Pareto distribution
George K. Zipf knownFor Pareto distribution
this entity surface form: Zipf's law
Pareto knownFor Pareto distribution
subject surface form: Vilfredo Pareto
Pareto hasDerivedConcept Pareto distribution
Pareto principle relatedConcept Pareto distribution
Pareto distribution relatedDistribution Pareto distribution self-linksurface differs
this entity surface form: Lomax distribution
Manual of Political Economy subject Pareto distribution
Manual of Political Economy hasConcept Pareto distribution
this entity surface form: Pareto law