Research Paper No. 524

The Changing Distribution of Income with Age: Estimates of the Exponential Family Using Grouped Data.

by

Alexander Bakker and John Creedy.

June 1996

Department of Economics. University of Melbourne. Parkville Victoria 3052 Australia

CONTENTS

1 Introduction
2 A Demand and Supply Model
• The Deterministic Model
• The Stochastic Specification
3 Estimation Using Grouped Data
• Unconditional Distribution Estimates: The GLSFE
• Maximum Likelihood Techniques: FML
4 Application to New Zealand Data
• New Zealand Income Distribution Data
• Unconditional Distribution Estimates
• Conditional Model Specification
5 Conclusions

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