A0275
Title: Bayesian analysis of aging and declining household size on income distribution in Japan
Authors: Kazuhiko Kakamu - Nagoya City University (Japan) [presenting]
Abstract: A new dynamic model is proposed to estimate income distributions from grouped data and simultaneously examine the causes of changes in income distribution. Assuming a generalized beta distribution of the second kind as a hypothetical income distribution, a dynamic model is constructed by extending the state-space model. The parameters of the model are estimated using a Markov chain Monte Carlo method. Using Japanese household survey data, the impact of aging and declining household size is examined on income distribution in Japan. The empirical results confirm that both the aging of the population and household size affect income inequality. In particular, both the aging of the population and household size affect an increase in the proportion of lower-income households, affecting income inequality among lower-income households.
