De Montfort University, Leicester, England
Room I1.09, University of Waikato
The seminar explores the patterns of change in the annual household income in the countries of the European Community during the years 1994-1999. The income is modelled by mixtures of log-normal distributions, and the mixture components are interpreted as representing one sub-population with steady increments and others with various levels of volatility. The method is extended to models for a combination of log-normal and categorical variables. An index of income stability is defined for the countries. Graphical summaries of the results are emphasized.
Plans for other applications of mixture models are outlined.
(Joint work with MG Pittau.)