Income--United States

This thesis uses time series analysis to construct
models of income and consumption in the United States
between 1947 and 1983. The data are quarterly observations
on three measures of income and two of consumption. The
study begins with a survey of univariate and multivariate
model building techniques. With the life cycle - permanent
income hypothesis as a foundation, theoretical models of
income and consumption are discussed. These models are then
fit to the data and examined. Tests for causality are also
covered in order to determine the manner in which the two
processes are related in a multivariate model.

This thesis focuses on the size distribution of non-white incomes
for families, unrelated individuals, and total for the eleven year
period from 1963 through 1973. Techniques used in the theoretical
study are Lorenz-Gini Index , the Lognormal Distribution and Pareto's
Law, Chapter II covers the methodology; Chapter III, a survey of
the literature; Chapter IV, theoretical analysis and empirical
results; Chapter V, summary and conclusions with recommendations
for further research. Income data was extracted from the Department
of Commerce's P-60 series for each year during the period. It is the
conclusion of this thesis that the size distribution of non-white
incomes has not changed significantly during this period.