This paper discusses inferential procedures for the family of stable distributions, when the data are tabulated in the form of interval frequencies. The estimation criteria used are minimum chi-square and multinomial maximum likelihood. In evaluating the theoretical probabilities corresponding to the intervals, use is made of the inversion theorem for characteristic functions. Chi-square tail probabilities for independent samples are pooled by means of theKolmogorov statistic. As an illustration, the methods are applied to Dutch and Australian income data.

, ,
Erasmus School of Economics

van Dijk, H., & Kloek, T. (1980). Inferential procedures in stable distributions for class frequency data on incomes. Econometrica. Retrieved from