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Information Technology and the Rise of the Power Law Economy Completed Research Paper

机译:信息技术与幂律经济崛起完成的研究论文

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We show that the dramatically increasing share of income going to top earners is consistent with the rise of the "power law economy" and argue this may reflect networks and increased digitization. Specifically, tax data (1960-2008) show an increasing dispersion of incomes in the portion of the distribution drawn from a power law, as opposed to the long-established log-normal distribution. We present a simple model arguing that the increased role of power laws is consistent with the growth of information technology, because digitization and networks facilitate winner-take-most markets. We generate four testable hypotheses which are supported by the data. (1) Our model fits the data better than a purely lognormal distribution, (2) the increase in the variance of the log-normal portion of the distribution has slowed, consistent with slowing skill-biased technical change, (3) more individuals now select into the power law economy, (4) skewness has increased within that economy.
机译:我们表明,大幅增加的收入份额占顶级收入者的份额符合“权力律经济”的崛起,并认为这可能反映网络和增加数字化。具体而言,税收数据(1960-2008)显示了从电力法汲取的分布的分布部分中收入的越来越多的分散,而不是长期确定的日志正态分布。我们展示了一个简单的模型,争论权力法的作用增加与信息技术的增长一致,因为数字化和网络促进了赢家最大的市场。我们生成四个可测试的假设,这些假设由数据支持。 (1)我们的模型比纯粹的Lognormal分布更适合数据,(2)分布的日志正常部分的方差的增加减缓,符合技能偏见的技术变速放缓,(3)现在更多的人选择进入权力律经济,(4)偏斜在该经济中有所增加。

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