Wealth Distribution across Countries: Quality of Weibull, Dagum and Burr XII in Estimating Wealth over Time

Abstract This study aims to determine which distribution provides a better goodness-of-fit for the distribution of wealth across countries over time. Using eight goodness-of-fit measures, we compared the Burr XII, the Weibull, and the Dagum distributions. We obtained that the Burr XII distribution outperforms the Weibull or Dagum distributions in capturing the wealth distribution across countries over the years 2012-2018. Our study implies that researchers or policymakers who wish to examine the relationship between wealth distribution and other financial variables, or actions by policymakers, should use the Burr XII distribution to estimate the wealth distribution parameters.