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Champernowne distribution

In statistics, the Champernowne distribution is a symmetric, continuous probability distribution, describing random variables that take both positive and negative values. It is a generalization of the logistic distribution that was introduced by D. G. Champernowne. Champernowne developed the distribution to describe the logarithm of income.

Definition

The Champernowne distribution has a probability density function given by

where are positive parameters, and n is the normalizing constant, which depends on the parameters. The density may be rewritten as

using the fact that

Properties

The density f(y) defines a symmetric distribution with median y<sub>0</sub>, which has tails somewhat heavier than a normal distribution.

Special cases

In the special case () it is the hyperbolic secant distribution.

In the special case it is the Burr Type XII density.

When ,

which is the density of the standard logistic distribution.

Distribution of income

If the distribution of Y, the logarithm of income, has a Champernowne distribution, then the density function of the income X&nbsp;=&nbsp;exp(Y) is

where x<sub>0</sub> = exp(y<sub>0</sub>) is the median income. If λ = 1, this distribution is often called the Fisk distribution, which has density

See also

References