Abstract

This paper develops the model that can be used to analyze income inequality through mathematical and statistical approaches and the mode is introduced to income inequality in Thailand. The study precisely constructs the model displaying a structural change in income distribution among household groups as there is a growth of production in each economic sector. Based on the model, there was still the problem of income inequality in Thailand but the situation was gradually but slowly solved in the past 30 years. However, Thailand's distribution of income is likely to be negatively affected from exogenous shocks, for example, an economic crisis and the natural disaster. Moreover, the results from this model had both conformity and unconformity with the Gini coefficient as a key indicator of income inequality.

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