Income Growth Rates Research Articles

Do Inconsistent Public Opinions Explain Inconsistent Policies?

ABSTRACTThis paper examines whether inconsistent public sentiments on capitalism may lead governments to adopt incoherent economic liberalization packages characterized by uneven attention to different policy areas. We propose that inconsistent sentiments obstruct political consensus‐building on reform trajectory within governing coalitions. These questions are explored empirically using a sample of up to 25 postsocialist countries during the initial phase of their market transition (1991–2001). We present evidence that ideological inconsistency of the median voter—defined as the standard deviation of median capitalism‐related sentiments among likely voters—is associated with more fractionalized governing coalitions along party lines and that, in turn, higher government fractionalization increases the dispersion of promarket policies. Countries with greater economic policy dispersion have historically experienced lower income growth rates, highlighting the importance of maintaining balanced reform paths.

Role of Institutional Zakat Management of Bangladesh in Recipients’ Income Generation

The majority of Muslims in Bangladesh distribute zakat individually. Zakat management is conducted in both the public and private sectors. However, there is a significant lack of inclination towards making zakat payments via organizations. This research aims to investigate the role of zakat in generating money via institutional management. This study used a mixed-method approach, including qualitative and quantitative data. A systematic questionnaire survey was conducted on 200 people who received zakat, representing both the institutional and non-institutional sectors. The findings of this research suggest that those who received zakat via institutions had a greater capacity to generate money than those who got zakat through informal means. Several zakat management institutions are helping zakat recipients increase their income by supplying them with income-generating items and a significant quantity of zakat funds. It may be inferred that the proper implementation of institutional zakat management has the potential to enhance the income growth rate of zakat recipients in Bangladesh.

Optimal Debt Ratio and Investment-Consumption Strategies with Taxation in the Presence of Jump Risks

This paper derives an optimal debt ratio, consumption rate and investment strategies with taxation for an investor who invest under four background risks: investment, taxation, income and jump risks. The underlying assets considered in this paper are a riskless and risky asset. The risky asset is assumed to follow a jump-diffusion process. We also assume that the income growth rate and tax payment of the investor follow a jump-diffusion process. The aim of the investor is to derive the wealth-after-tax process. The wealth-after-tax process of the investor is taken to be the difference between the wealth-before-tax and the tax payment processes of the investor. The resulting wealth-after-tax process of the investor was solved using dynamic programming approach. As a result, we derive the optimal investment strategies, optimal debt ratio and optimal consumption rate for the investor over time by assuming that the investor chooses a power utility function. The optimal investment strategies were found to involve four components: a speculative portfolio, a tax risks hedging portfolio strategy, an income growth rate risks hedging portfolio strategy and a risk-free fund that holds only the riskless asset. Interestingly, we found that before loan is taken or given, the following must be considered: interest rate on loan to be taken or given, the nominal interest rate, income growth rate, coefficient of the investor willingness to bear the risk of taking debt. We also found that as the income growth rate of the investor increases, the debt profile of the investor decreases. We observe that as the coefficient of risk aversion with respect to debt ratio tends to unity, the amount of debt will be unbearable. It was also observed that the higher an investor willingness to bear the risk of taking debt, the smaller the optimal debt ratio of the investor over time. We further found that when tax rate increases, consumption rate decreases and vice versa. To ascertain the validity of our models, data were collected from six companies in Nigerian Stocks Exchange, and SPSS package was used to analyze the data. Some empirical results were obtained in this paper, using MATLAB software.

Research on the Analysis Model of Regional Economic Growth Differences in China Based on Big Data and Intelligent Algorithms

China’s growing economy contributes significantly to worldwide consumption. Economic rebalancing promises opportunities for manufacturing exporters, and that can weaken commodity demand in the long term. China exerts increasing influence on emerging countries through trade, investment, and ideas. China faces several important economic issues that can hinder future development, including distortive economic policies that have evolved into an overreliance on fixed investment and exports for economic growth, government assistance for state-owned businesses, and a weak banking system. Building an information infrastructure and enhancing the technical level and application capability of big data (BD) remain under the purview of the Chinese Government. Artificial intelligence (AI)-based hybrid artificial neural network (HANN) might boost total factor productivity by a large margin, influencing many sectors in China in ways that official statistics would miss, including changes to the labor market, investment patterns, and overall productivity. Hence, BD-HANN has a coefficient of variation, quantity graph analysis, standard deviation, and entropy index, some of the most conventional quantitative research tools used to examine disparities in regional economic growth. According to the neoclassical growth model, regions with lower starting values of the capital-labor ratio anticipate higher per capita income growth rates. Thus, poor areas will grow faster than rich ones, assuming that the only difference between regional economies is the level of their initial stock of capital.

Examining the Pattern of Household Monthly Income and Expenditures by State in Malaysia

Abstract Malaysian households have exhibited significant improvements in the standard of living and economic opportunities. However, a larger household income does not always translate into an economically comfortable household. Regional variations in income and expenditure levels need to be explored for better understanding on the diversity of experiences among Malaysian households. Therefore, this study aims to investigate the pattern and relationship between household income, household expenditure, and household size among states in Malaysia. Several methods have been used such as the Pearson correlation coefficient, paired t-test, and multiple regression model using IBM Statistical Package for the Social Sciences (SPSS) version 27 and Microsoft Excel for the year 2016, 2019 and 2020. Descriptive results showed that despite the significant increase in household median income, households seemed unable to allocate the income increment to their expenses, possibly due to higher living costs requiring adjustments in expenditure. Results also showed that the expenditure growth rate outpaces the income growth rate drastically in a few states such as Negeri Sembilan and Putrajaya. The inferential results have shown that there is a significant difference in the mean monthly household median income and the mean monthly household median expenditure across states in Malaysia between 2016 and 2019. Multiple regression revealed that household median income significantly predicted household median expenditure, while household size is not significant. This study suggests government to regularly review the prices of essential goods and services to ensure they remain affordable for all households. This is crucial for improving the living standards and well-being of Malaysians.

A three-level nested portfolio optimization model with position allocation

Existing portfolio optimization models cannot well capture the real position allocation requirement, leading to limited impact in practice. To overcome this challenge, we propose a three-level nested portfolio optimization model with position allocation. Within this model, the inner and middle levels collaboratively determine the optimal portfolio, while the outer level focuses on optimizing the holding proportion of each stock in the optimal portfolio. Compared with existing models with portfolio weights, the proposed model imposes the position allocation constraint that precisely characterizes the limitations on holding each stock. This constraint is crucial for investors to obey securities trading regulations involving position limitations and to mitigate the potential impact of market risks. To address the nonlinear and nonconvex nature of the novel model, we develop an intelligent optimization algorithm by effectively hybridizing the support vector regression and the enhanced grey wolf optimizer. We comprehensively evaluate its performance using eight metrics, including accumulative return, annual return, Sharpe ratio, maximum drawdown, absolute and relative win ratios, predictive precision and accuracy. The experimental results indicate that (i) the proposed model can achieve more excess returns than those stock selection models not considering position allocation, especially for the large-cap stocks; (ii) compared with other state-of-the-art meta-heuristics, the enhanced grey wolf optimizer can yield better portfolio in conjunction with the support vector regression; (iii) in the context of the Chinese A-share stock market, specific financial indicators such as return on equity, inventory turnover rate, net income growth rate, and debt-to-equity ratio should be given greater consideration compared to other financial metrics.

Кредиттік серіктестіктің қызметін бағалау және оның ауыл шаруашы- лығы кәсіпорындарын қаржылық қамтамасыз етудегі рөлі

The purpose of the article is to evaluate the role and activities of a credit partnership in the process of financial support for agricultural enterprises. Using abstract-logical and statistical methods in accordance with the goal, the tasks of dynamic assessment of the activities of Tselinogradskoe Credit Partnership LLP in the Akmola region were considered, determining its role in providing financial support to agricultural producers, the state of lending to these producers, in particular, were considered the structure of loans and their use, as well as identifying problems associated with them. The state of income and expenses of the credit partnership, indicators of lending to agricultural producers, that is, their dynamics and structural changes, were assessed. As a result, from an economic point of view, it was found that the increase in net profit is determined, first of all, by the faster growth rate of income compared to the growth rate of expenses. The intermediary activities of CT Tselinogradskoe LLP were analyzed based on the number of participants, the amount of loans issued by area, their return rates over the course of several years, as well as a positive result of the activities of the credit company, A trend has been identified to increase the volume of lending to agricultural producers. And the efficiency of the credit partnership is confirmed by the improvement in the production and financial performance of participants and loan recipients. Further development of the mechanism for lending to agricultural producers through credit partnerships should be carried out taking into account the results of the production and financial activities of the partnership participants, and their volume should take into account the results of the enterprises’ activities.

The Effect of Uncertainty on Inflation: Evidence in ASEAN

This article examines the relationships between extreme poverty, economic growth, and inequality, assesses if changes in inequality dampen the impact of income on extreme poverty, and determines the magnitude of the inequality growth trade-off index in Costa Rica, the Dominican Republic, and Honduras. A country-specific ARDL bound regression was conducted. The findings indicate the presence of direct and indirect dampening impacts of changes in inequality on income growth and extreme poverty reduction. The magnitude of the inequality growth trade-off- index indicates whether to prioritize growth and/or inequality reducing policies. This means that the higher the inequality, as in Honduras, the higher the economic or average income growth rate required to compensate for the increase in inequality to achieve a given level of extreme poverty reduction. Accordingly, there is no one-size-fits-all policy approach to tackling extreme poverty.

Poverty and Inequality Dynamics: Measuring Dampening and IGTI in Three CAFTA-DR Countries

This article examines the relationships between extreme poverty, economic growth, and inequality, assesses if changes in inequality dampen the impact of income on extreme poverty, and determines the magnitude of the inequality growth trade-off index in Costa Rica, the Dominican Republic, and Honduras. A country-specific ARDL bound regression was conducted. The findings indicate the presence of direct and indirect dampening impacts of changes in inequality on income growth and extreme poverty reduction. The magnitude of the inequality growth trade-off- index indicates whether to prioritize growth and/or inequality reducing policies. This means that the higher the inequality, as in Honduras, the higher the economic or average income growth rate required to compensate for the increase in inequality to achieve a given level of extreme poverty reduction. Accordingly, there is no one-size-fits-all policy approach to tackling extreme poverty.

ANALISIS PENDAPATAN UNTUK MENINGKATKAN LABA BERSIH PADA KOPERASI PEGAWAI REPUBLIK INDONESIA TUTWURI DIKBUDMORA KOTA MADIUN

This research aims to determine the level of income growth and net profit growth, and whether the increase in income each year is always followed by income growth in the following year. Likewise, whether the increase in net profit each year is followed by growth in net profit in the following year. The research object is KPRI Dikbudmudora which is located in the city of Madiun. Using Income data, Operational data, and Tax data from KPRI Dikbudmudora Madiun city from 2019 to 2021. The data analysis technique uses descriptive analysis techniques. The data collection technique used is documentation. The results of this research show that the income and net profit at KPRI Dikbudmudora, Madiun City in 2019-2020 has increased every year, however, the level of efficiency in the company's operational expenses has decreased, so this is one of the factors causing the growth rate of income and net profit. The company's net income fluctuates every year.

Can Piketty’s Interest Rate – Growth Rate Framework Explain Increasing Income Inequality in Pakistan?

Inequality in income distribution has important ramifications for economic growth, development, and social justice (see Atkinson (2000), Piketty (2013), Milanovic (2016), etc.). Piketty (2013) explains the phenomena of growing income inequality in high-income countries by comparing the interest rates (r) and growth rates (g) over time. The crux of the argument is that since the upper income groups generate a significantly greater proportion of their income from investments as compared to lower income groups (due to higher savings rate compared to lower income group), interest rates performing better than the national income growth rates in the high-income countries in the post-cold war era (r-g) explain growing income inequality in these countries. This paper examines the use of this methodology to explain income inequality in Pakistan. It compares the evolution of income of the top 20 percent of Pakistan’s population with the income of the bottom 20 percent, using Piketty’s lens of interest rate growth rate dynamics. Empirical results show that r-g methodology does not capture the income distribution dynamics of Pakistan. Upper income group appears to be negatively affected by increases in interest rates as compared to the lower income group. Prices, international trade, taxes, and financial development tend to be the leading reasons for reducing the impact of r and g framework to explain the income distribution. This paper makes novel contributions to the methodology and implications of Piketty’s framework for studying income inequality in small, open, less developed countries like Pakistan.

Measuring real money demand in Cambodia: an ARDL approach to cointegration

The findings obtained through the ARDL approach to cointegration indicate that real income, consumer price index, and interest rate are cointegrated with real money demand. In terms of the estimated results derived from the long-run model, it is observed that real income has a statistically significant positive impact on real money demand, while the general price level and interest rate have a negative impact. The short-run dynamic model, known as the error correction model, demonstrates that all explanatory variables collectively account for the growth rate of real money balances. In the short-run, the growth rate of real income exhibits a positive relationship with the demand for real money, whereas the inflation rate and changes in interest rate have a significant negative effect on the demand for real money balances. The estimated slope coefficient of the short-run dynamic model, which measures the speed of adjustment, is projected to be 60.67%. This outcome suggests that the real money balance model takes no more than two quarters to adjust towards long-run equilibrium in response to short-run dynamic shocks. Stability tests, such as the CUSUM and CUSUMSQ tests, indicate that the real money demand function in Cambodia remains stable in the long-term. The findings derived from this study provide empirical evidence in favor of the quantity theory of money.

Economics of Happiness: What Really Counts?

The study of happiness was initially examined psychologically, then expanded to incorporate social and, finally, economic aspects to investigate the reasons for the disparities in happiness levels across countries. Numerous scholars from various fields of expertise have developed an interest in studying happiness as a topic, as it has become a global issue. The notable work of Easterlin known as “Easterlin Paradox” postulates that happiness varies linearly with income at a point in time, both within and across nations. However, the long-term growth rates of happiness and income are not significantly linked. The economics of happiness is a multidisciplinary study of the relationship between economic conditions and subjective well-being or happiness. Happiness economics can be examined from both a microeconomic and macroeconomic perspective, providing valuable insights into both individual well-being and societal gain. The economics of happiness has received a lot of attention recently, especially in terms of understanding the differences in life satisfaction between rich and developing countries. Wealthier countries are happier as a group than poorer countries; happiness seems to increase with wealth up to a limit, but not beyond it. Public policy has a substantial impact on happiness economics by changing the well-being of individuals and society through numerous mechanisms such as fiscal policy, public spending, health impact assessment, and family assistance. The expanding national emphasis on subjective well-being accentuates the need to include happiness in governmental decisions. Keywords: happiness, subjective well-being, Easterlin Paradox

The Value of Sustainable Property Management in Real Estate: Evidence From Hong Kong

This study investigates whether sustainability in property management is valued by property buyers. Using a sample of 312,474 property transactions in Hong Kong from 2007 to 2021 and based on a hedonic pricing model, we find that the environmental, social, and governance (ESG) performance of property management companies is positively associated with housing prices, and that housing prices drop if property management companies experience ESG-related risk incidents. The results are robust when the sample is restricted to repeat-sales transactions and when using a location-based matching approach and an instrumental variable approach. Further analysis shows that housing prices increase with the social and governance performance of property management companies but not with their environmental performance. The negative effect of ESG incidents on housing prices increases if the incidents are reported by high-reach media. Homebuyers and nonlocal buyers are more willing to pay a premium for sustainability in property management than are real estate speculators and local buyers. Additional evidence suggests that ESG practices play a more significant role in affecting property value through lower risk or a higher rental income growth rate than through higher gross rents. Overall, this study provides evidence of the value of sustainable property management in real estate.

Analysis of 10-year income trends for pharmacists and other select health professionals.

To evaluate income trends among pharmacists and other select health professions (dentists, nurse practitioners, registered nurses, and physicians) in the US for the 10-year period of 2012 to 2021, with special attention given to the first 2 years of the COVID-19 pandemic (2020 and 2021). A retrospective analysis was conducted of 2012 to 2021 income data for select health professions, collected from the American Community Survey. Univariate time series analysis was conducted using exponential smoothing to examine income patterns over the 10-year study period and forecast income for the next 5-year period (2022 to 2026) for each health profession. Additionally, time series regression models were constructed for each health profession. Descriptive statistics (mean percent change in income and SD) were calculated for each health profession for the prepandemic era (2012 to 2019) and the first 2 years of the pandemic (2020 and 2021). Goodness-of-fit statistics for each forecast model indicate highly accurate forecasts. The model for each health profession indicates a significant positive trajectory in income (P < 0.001), although pharmacists are projected to have a lower rate of income growth among the 5 health professions for the next 5-year period, 2022 to 2026. During the first 2 years of the pandemic, pharmacists had the lowest mean percent change in income (mean, 2.0%; SD, 2.0%) among the 5 health professions. Growth in pharmacist income is projected to lag behind that in other health professions in the near future. Individual-, organization-, and profession-level strategies may facilitate opportunities for income growth among pharmacists.

Modeling the return on investment in human capital in the IT industry of Ukraine

Purpose. To identify patterns of return on investment in human capital in the IT industry of Ukraine through a quantitative assessment of the relationship between the income of IT specialists and the experience and other characteristics of the specialist and the company, as well as the formation of relevant recommendations. Methodology. The empirical basis of the study was a survey on the salary of IT specialists in Ukraine conducted in December 2022. The methodological basis of the study was general scientific and special research methods, in particular, the method of abstraction (to focus on the main determinants of the formation of IT specialists’ income), induction (to extrapolate the patterns found in the sample to the entire IT industry of Ukraine), economic mathematical modeling (for the construction of a multiple regression model that reflects the patterns of influence of factors on the income of IT specialists that exist in reality). Findings. It was established that among IT specialists people are predominant with little work experience (up to 5 years). The effect of experience on the growth rate of income has a decreasing non-linear nature, while the most noticeable increase in income is observed during the first years of work in the specialty. It was found that the highest-paid IT professionals are software development engineers, managers at various levels, and quality assurance engineers. It has been proven that the level of English proficiency has a positive effect on income. A higher level of remuneration for the work of IT specialists in product companies and startups compared to outsourcing or outstaffing companies has been established. Originality. It has been revealed that the relationship between the income of IT specialists and their work experience, profession, level of English language proficiency, and company type. Practical value. The applied value of the study lies in the ability to predict the income of IT specialists. The formed recommendations can be used in the activities of IT companies in terms of improving financial control over the spending of funds for the payment of services of IT specialists, assessing the feasibility of investing funds in personnel development, as well as substantiating the planned indicators of changes in the costs of paying for the services of IT specialists.

An Empirical Study of the Implications of Service Sector Growth for Output Growth in Bangladesh

Due to the growing importance of Bangladesh’s service economy and the country’s expanding industrial sector, strengthening the service sector has become a primary objective. Given the size and interconnectedness of the services sector with the rest of the economy, it is critical to understand how it affects other macroeconomic variables, most notably output growth. Our primary objective is to survey and analyse the service sector’s current state to ascertain its contribution to economic growth. This study undertakes this investigation using systematic econometric approaches and annual data from 1972 to 2021. Findings suggest that expanding the service industry in Bangladesh positively impacts the country’s per capita income (PCI) growth rate. Particularly, if the service sector growth increases by one percentage point, the growth of per capita real GDP will increase by 0.62 percentage points. The finding has important policy implications. Most importantly, government needs to enact policies to promote the service sector of the country in an effort to achieve economic prosperity. JEL Codes: L80, O11, O14

Credit Scoring Modelling For Corporate Banking Institutions

This research aims to build a credit scoring modeling simulation of bank corporate loans. The credit scoring model is used in assessing creditworthiness in credit decisions. This model determines whether or not a company is eligible for the corporate credit facility it proposes. Observations were made of 100 companies included in the list of Kompas100 Index formers on the Indonesia Stock Exchange (IDX) that have the potential to apply for loans/credits to Bank Financial Institutions (IKB) in optimizing the corporate capital structure through bank debt facilities in the period 2022. Analysis was conducted on five financial aspects consisting of 14 research variables, including (i) liquidity aspects, including current ratio and quick ratio variables; (ii) solvency aspects, including debt asset ratio and equity ratio variables; (iii) profitability aspects including return on net assets, operating profit ratio, price to earnings ratio variables, (iv) activity aspects including total asset turnover, accounts receivable turnover, inventory turnover, current assets turnover, and (v) growth aspects including operating income growth rate, total assets growth rate, and operating profit growth rate variables. The analysis tool uses Logistic Regression through an assessment conducted on the company's credit rating as a proxy for the dependent variable, worth one if the credit application is feasible and worth 0 if the credit application is not feasible with a cut-off point of 0.5. The results show that credit scoring modeling for corporate credit is significantly formed from liquidity (CR) and solvency (DER) aspects. Out of 61 companies classified as not eligible for credit facilities, 58 companies were classified correctly, and out of 39 companies classified as eligible, 29 companies were classified correctly. The overall percentage shows 68.0, meaning that the logistic regression model has an accuracy of 68%.

The Potential Analytical Impact of Significant Sectoral Creative Economy on Thailand’s Economy: A Case Study of the IRS-CGE Model vs. the CRS-CGE Model for Both the National and Provincial Economies

The United Nations has promoted and supported the UNCTAD Creative Economy Programme since 2004 to help countries around the world understand how to promote economic development through creativity in industries. This research article aims to determine whether the creative economy will be the major engine to accelerate Thailand’s economic development in the coming decade or not, and what the major creative economy sectors are that must be prioritized or initiated and focused on. The data implemented in this research cover 2011–2018, which consist of creative economy sector income, the IO table, and the SAM table. The methodology utilized in this research was the ML model, the GREY model for predicting the growth rate of income from the major creative economy sectors contribute to Thailand’s economy between 2019–2025, and the CGE model. The study’s empirical findings show that the significant sectoral creative economy consists of fashion, advertising, Thai food, and cultural tourism, which need to be given more stimulus. Furthermore, the economies of Chiang Mai, and Thailand as a whole, would eventually be high-income economies if creative economy sectors were to be promoted and continuously supported by efficient policies. the economic growth of Thailand and Chiang Mai would eventually become high income whenever these economies allow creative economy sectors to be promoted or supported by efficient policies continuously.

ПРОБЛЕМА НЕФОРМАЛЬНОЙ ЗАНЯТОСТИ В РОССИИ И В ЕАЭС

The object of the study is issues of regionalisation and the formation of informal employment. The subject of the study is the public and private sectors of the EAEU member countries. The purpose of the study is to determine the degree of influence of regionalisation on the development of informal employment in the EAEU. The relevance of the work is due to the development of informal employment in Russia and the EAEU member countries. The scientific novelty lies in the attempt to explain the impact of regionalisation and the gig economy on the development of informal employment. To determine the degree of reduction in the relationship between employee and employer, data on the development of trade union activity and informal employment were used. The research methods are economic and comparative analysis of the degree of development of the creative economy, features of the development of trade union organisations, etc. The author concludes that accelerated regionalisation with low growth rates of real incomes of the employed population, without the development of public institutions and trade union organisations, contributes to the growth of informal employment.