a positive number κ that is the smallest value that a random variable with a Pareto distribution can take. As applied to distribution of incomes, κ is the lowest income of any person in the population; and a positive number θ the "Pareto index"; as this increases, the tail of the distribution gets thinner. As applied to distribution of incomes, this means that the larger the value of the Pareto index θ the smaller the proportion of incomes many times as big as the smallest incomes.
a positive number κ that is the smallest value that a random variable with a Pareto distribution can take. As applied to distribution of incomes, κ is the lowest income of any person in the population; and a positive number θ the "Pareto index"; as this increases, the tail of the distribution gets thinner. As applied to distribution of incomes, this means that the large:r the value of the Pareto index θ the smaller the proportion of incomes many times as big as the smallest incomes.