Changes In Income Research Articles

Tax reforms and elasticity of taxable income: estimation using the current population survey

ABSTRACT Changes in taxable income can capture many of the behavioural responses to changes in tax policies. In this paper, using the publicly available Current Population Survey (CPS) data and analysing two of the most recent tax reforms (Tax Cuts and Jobs Act of 2017 and the American Taxpayer Relief Act of 2012), we provide a new estimate for the elasticity of taxable income with respect to marginal tax rates. As is common in the literature, the paper conducts a panel data analysis and compares taxable income from before and after tax reforms to estimate the elasticity. Using an instrumental variable approach, we find an elasticity of 0.81, a value that is within the range of estimates found in previous studies.

MODEL USAHATANI OPTIMAL PADA LAHAN KERING BERIRIGASI AIR TANAH DI KABUPATEN LOMBOK TIMUR

To overcome the problem of scarcity of water resources, the NTB Regional Government has built several groundwater irrigation services in East Lombok Regency. Given that the development of surface water irrigation schemes requires a lot of investment, the facilities built by the government must be used massively for the prosperity of the people. In general, the purpose of this study is to build a farming model that can provide the best income for farmers. In particular, the objectives of this study are to: 1) Examine the management system of groundwater irrigation schemes in meeting water needs for farmers. 2) Analyze changes in planting patterns, planting intensity and income of farmers who receive groundwater irrigation scheme services. 3) Build a farming model that can provide maximum income for farmers using groundwater irrigation schemes. 4) Analyze the factors that influence farmers in determining planting patterns. This research will be conducted in East Lombok District on the grounds that East Lombok District has the highest number of groundwater irrigation service schemes. Respondents of groundwater irrigation/pump management were determined by proportional random sampling in 3 villages with the most groundwater irrigation networks. Taking into consideration the distance and field terrain as well as the number of irrigation networks in the 3 villages, 6 management respondents were determined in North Pringgabaya Village, 4 in Labuan Lombok Village and 5 in Gunung Malang Village, so that all respondents managing this groundwater irrigation network amounted to 15 people (groundwater irrigation network). Farmer respondents were then selected based on respondents who managed the selected groundwater irrigation network. From the survey, it was determined that 5 (five) dominant commodities cultivated by farmers were corn, tobacco from the people, chilies, tomatoes and shallots. The number of farmers was set at 30 respondents on each type of crop cultivated, except for tomato plants only found 22 respondents. All respondents amounted to 142 farmers with a distribution of 69 people from North Pringgabaya Village, 40 people from Gunung Malang Village and 33 people from Labuan Lombok Village. The business model is built using a Linear Mathematical Model where the ABQM program is used to solve the solution. The results showed that the infrastructure for providing groundwater/pump irrigation networks was built by the government (subsidies) and management was handed over to the community. Its officers are elected by deliberation. Operational costs are borne by the community at a rate of Rp 35,000-Rp 60,000 per service hour depending on the amount of well water discharge. The provision of groundwater irrigation networks has changed the planting pattern of farmers, from planting once a year in the rainy season only with field rice or corn, to 2 or three plantings, commodities cultivated in addition to corn junga horticultural commodities such as one tomato chili and shallots, and plantation commodities, namely tobacco. The optimization results show that the planting pattern of onions and corn provides the highest income for farmers with a large income reaching Rp. 27,136,137.44. Farm income, land area, capital owned by farmers and the number of workers in the family are factors that determine farmers in choosing planting patterns to be applied.

An econometric analysis of price elasticity and demand factors in the global honey and honey-based beverage markets

The contemporary discourse on global commodity markets presents a myriad of compelling quandaries for scholars, policy-makers, and practitioners alike. Among these markets, since 2015 the global honey and honey-based beverage sector embodies unique economic characteristics and dynamics. While the market has experienced expansive growth in a plethora of jurisdictions, Kazakhstan remains out of focus of researchers. For this reason, we decided to undertake an exhaustive econometric analysis, scrutinizing the price elasticity of demand and various demand determinants in Kazakhstan’s honey and honey-based beverage markets. Utilizing longitudinal data spanning over a decade, this investigation employs advanced econometric methodologies - including but not restricted to Ordinary Least Squares (OLS) regressions, co-integration analyses, and error-correction models - to rigorously interrogate the price elasticity of demand for honey and honey-based beverages. The research encompasses multiple control variables like GDP per capita, consumer behavior, inflation rates, and population dynamics to create a multi-faceted econometric model capable of rendering nuanced insights. It incorporates both macroeconomic and microeconomic variables to delineate the symbiotic relationship between price elasticity and demand determinants such as consumer income, advertising impact, and price points of substitute and complementary goods. The analysis showed that the honey market in Kazakhstan is fundamentally oligopolistic, and the triumvirate of top producers collectively wield a 60% market control, leaving a residual 40% for the aggregation of small and medium enterprises. However, the findings unveil a complex web of economic variables influencing the price elasticity of demand in Kazakhstan’s honey markets. Most notably, the study elucidates that the price elasticity of demand for honey and honey-based beverages is highly inelastic in the short term but transitions towards being elastic in the long run, a phenomenon predominantly influenced by changes in consumer income and preferences. A 12.3% increase in exports from 2020 to 2021 implies an increasing global demand for Kazakhstani honey, and thus should be a focus for stakeholders to leverage for market expansion. An Export-to-Production Ratio at 26% indicates that roughly one-fourth of honey produced is assigned for the international markets. The average production cost per kilogram of honey in Kazakhstan was found lower compared to the global average. Remarkably, digitization has been adopted as a salient strategy for market development. The penetration of digital platforms for honey trading increased from 2% in 2012 to 18% in 2021. The research identifies complex interplay between exogenous variables like global market trends, geopolitical factors, and cultural shifts, contributing to a comprehensive understanding of the market dynamics at play. This article makes several seminal contributions to the academic dialogue surrounding the economics of honey markets. Firstly, it adds a new geographic focus by centering on Kazakhstan, an understudied yet burgeoning market in the global honey industry. Secondly, the rigorous econometric methodology employed contributes to the methodological lexicon of commodity market analyses. Finally, the complex approach, incorporating both economic theory and real-world market trends, paves the way for future studies and aids in the formulation of policy directives aimed at stabilizing price volatility in commodity markets.

Earnings, Cohort Effects, and Inter‐Generational Inequality: Evidence From the Luxembourg Income Study

AbstractResearch suggests that inequalities between generations are most pronounced in the conservative European welfare states. However, it is likely that across all advanced capitalist societies superior earnings opportunities and steady employment are pursued at a later age due to secular labor market trends. In this paper, I examine the variation in generational inequalities across different regimes using data from the Luxembourg Income Study (LIS). The repeated cross‐sectional data allow me to trace the generational changes in income for eight countries, using both Age Period Cohort (APC) and synthetic cohort models. My results suggest that for most countries, cohorts born after 1980 have experienced lower entry‐level earning opportunities, relative to cohorts born between 1960 and 1980. However, synthetic cohort models suggest that while recent generations have suffered from successively worse entry positions, they appear to be “catching up,” which suggests that permanent “scarring effects” to lifetime earnings may not be inevitable.

Assessment of the activities of the agricultural credit corporations as a development institution

In the article, based on the public reporting materials of JSC «Agrarian Credit Corporation» for the period from 2017 to 2021, its activities as a development institution that finances agricultural entities are analyzed. A sufficiently detailed assessment of the financial condition of the Corporation itself was carried out. Financial and operational indicators are studied in dynamics, changes in the assets, liabilities and capital of the corporation, as well as the final financial results of the Corporation’s activities are shown. The changes in income and expenses of the corporation were studied and assessed, which made it possible to substantiate the level of efficiency of its activities. As a result, the indicators of the effectiveness of the use of assets ROA and the indicator of the efficiency of the use of equity ROE were calculated, which are characterized by high values. It was noted that in order to expand the coverage of agribusiness entities with credit funds, the Agrarian Credit Corporation uses various financial instruments: direct lending and funding of financial institutions. The volumes of borrowings are considered in dynamics and their importance in increasing the amount of financing of agricultural producers in the industry is shown. Such borrowing made it possible to identify the main creditor of the Corporation, which annually provides loans for lending to spring field and harvesting work through the Ministry of Finance of the Republic of Kazakhstan and loans from other financial institutions for subsequent lending to agribusiness entities. This indicates that this corporation will continue to act as the main financial institution for the development of agriculture.

Infrastructure Costs

Despite infrastructure's importance to the US economy, evidence on its cost trajectory over time is sparse. We document real spending per new mile over the history of the Interstate Highway System. We find that spending per mile increased more than threefold from the 1960s to the 1980s. This increase persists even conditional on pre-existing observable geographic cost determinants. We then provide suggestive evidence on why. Input prices explain little of the increase. Statistically, changes in income and housing prices explain about half of the increase. We find suggestive evidence that the rise of “citizen voice” in government decision-making increased spending per mile. (JEL D72, H54, N42, N72, R31, R42)

Testing Food Waste Reduction Targets: Integrating Transition Scenarios with Macro-Valuation in an Urban Living Lab

Bristol, one of the United Kingdom’s (UK) nine Core Cities, is seeking to achieve Zero Waste City status by 2049. This study combines macro-economic valuation with transition pathway mapping and adapted participatory scenario planning to stress test the city’s ambitious food waste targets. The primary aim is to enable better understanding of who might be affected by achieving these targets, both locally and nationally, the potential scale of impacts, and therefore the potential barriers and policy opportunities. The valuation focuses on household and commercial food waste, combining available site and city data with national level proxies. Impact areas include changes in sectoral income, employee income, capital owner income, tax revenue, and carbon emissions. Four scenarios, based on two extreme cases, are modelled to consider food waste reduction and potential shifts in consumption patterns. Results indicate that current market and governance failures incentivise waste, and suggest potential routes to transition, including trade-offs and resource reallocation, alongside the need to acknowledge and respond to these profound structural barriers. With further development and testing, the approach may contribute to a better understanding of how to achieve city socioenvironmental targets.

Does the female-headed household suffer more than the male-headed from Covid-19 impact on food security? Evidence from Ethiopia

Covid-19 pandemic and accompanying policy measures affected women's economic and social lives differently from men. However, its effect on the food security situation of women and men remains unclear. This study investigated whether female-headed households suffer more from covid 19 impact on food security than male-headed households in Ethiopia using the World Bank High Frequency Phone Survey data. Food Insecurity Experience Scale (FIES) is applied to measure food insecurity and multilevel-mixed effect random intercept linear model is used to analyze the determinants. The survey data show that, during the pandemic in 2020, nearly 27% of households face moderate or severe food insecurity and close to 6% face severe food insecurity. Regression results revealed that the pandemic and accompanying policy measures affected food security of female-headed households differently from male-headed households. The likelihood of female-headed households experiencing moderate or severe food insecurity is significantly higher by 5.7% points than male-headed households. Education level of the household head is the critical determinant of women's food insecurity. Every additional year of education of female heads has a significantly higher impact in reducing the likelihood of experiencing food insecurity than that of male-headed households. It is also found that having access to basic food items reduces the likelihood of facing moderate or severe food insecurity by 7.4% points. Besides, education level of the household head, income change and family size are critical determinants for food insecurity of the sample households. It is recommended that stakeholders and policy makers focus in the gender aspect while designing policy measures to control pandemics and fucus on improving accessibility of basic needs such as food items to all.

A rising tide that lifts all boats: An analysis of economic freedom and inequality using matching methods

The cross-country relationship between economic freedom and inequality is explored using matching methods. This approach addresses selection bias and endogeneity generally better than extant studies. Meaningful increases in the Fraser Institute's Economic Freedom of the World (EFW) index are related to changes in (i) decile income shares, (ii) decile income levels, and (iii) Gini coefficients. Increased economic freedom is associated with significant gains across the income distribution. It is also associated with modest increases in inequality – associated particularly with gains in the top income decile.

The interaction of socioeconomic stress and race on telomere length in children: A systematic review and meta-analysis

RationaleProposed mechanisms relating early life exposures to poor health suggest that biologic indicators of risk are observable in childhood. Telomere length (TL) is a biomarker of aging, psychosocial stress, and a range of environmental exposures. In adults, exposure to early life adversity, including low socioeconomic status (SES), is predictive of shorter TL. However, results in pediatric populations have been mixed. Defining the true relation between TL and SES in childhood is expected to enhance the understanding of the biological pathways through which socioeconomic factors influence health across the life span. ObjectiveThe aim of this meta-analysis was to systematically review and quantitatively assess the published literature to better understand how SES, race, and TL are related in pediatric populations. MethodsStudies in the United States in any pediatric population with any measure of SES were included and identified through the following electronic databases: PubMed, EMBASE, Web of Science, Medline, Socindex, CINAHL, and Psychinfo. Analysis utilized a multi-level random-effects meta-analysis accounting for multiple effect sizes within a study. ResultsThirty-two studies were included with a total of 78 effect sizes that were categorized into income-based, education-based, and composite indicators. Only three studies directly tested the relation between SES and TL as the primary study aim. In the full model, there was a significant relation between SES and TL (r = 0.0220 p = 0.0286). Analysis by type of SES categorization identified a significant moderating effect of income on TL (r = 0.0480, 95% CI: 0.0155 to 0.0802, p = 0.0045) but no significant effect for education or composite SES. ConclusionsThere is an overall association between SES and TL that is predominately due to the association with income-based SES measures implicating income disparities as a key target for efforts to address health inequity across the life span. Identification of associations between family income and biological changes in children that predict life-span health risk provides key data to support public health policies addressing economic inequality in families and presents a unique opportunity to assess the effect of prevention efforts at the biologic level.

Assessment of sustainable waste management alternatives using the extensions of the base criterion method and combined compromise solution based on the fuzzy Z-numbers.

A number of factors have contributed to the increase in waste production and diversity of waste, such as the increase in population, alterations in consumption patterns, economic development, income changes, urbanization, and industrialization. The production of different types of waste, such as electronic, urban, hospital, and industrial waste, makes it necessary to classify waste accurately and recognize effective criteria for waste management. To design and operate waste management systems, it is necessary to understand the sources and types of waste, as well as information about their composition and rate of production. As a result, this study aims to rank 21 types of waste according to Iran's economic, social, and environmental criteria, as well as 13 sub-criteria related to those criteria. For this aim, proposed a novel decision-making approach based on the extension of the base criterion method (BCM) and combined compromise solution (CoCoSo) methods under fuzzy Z-numbers. Additionally, sensitivity analysis and comprehensive analysis are conducted on the results of the criteria and alternatives of sustainable waste management. Based on the results of this study, direct profit and reduced landfill are the most important criteria for assessing sustainable waste management alternatives. According to the results of this study, the sub-alternative of industrial metal waste is the most important waste management option. Examining the next sub-alternative ranks under sustainable waste management options (mobile, communication equipment, and battery) shows that electronic waste requires more attention for recycling and sustainable waste management.

Причини зростання зовнішньої трудової міграції

Abstract. Introduction. In the conditions of intensive migrations, the need to regulate such processes is increasing, there is a need to use the positive potential of labor migrations for the purpose of development, minimizing negative consequences, ensuring the rights and freedoms of migrants. That is why reducing migration should be one of the priority tasks of the country's state migration policy. As a result of the fact that Ukraine is at the same time the country of origin, destination and transit of migrants, the territory of migration flows of different characteristics, different directions and different scales, ensuring state regulation in the field of migration is a complex task, the solution of which requires a complex, systematic approach, adequate funding, personnel and scientific software. The modern migration processes taking place in Ukraine are influenced by several important factors, which turned out to be insufficiently decisive and consistent, the promotion of European and Euro-Atlantic integration, in particular, the acquisition of a visa-free regime with the European Union. The migration experience and extensive networks formed as a result of the long-term participation of Ukrainians in migrations are a negative process for the socioeconomic development of the country. Purpose. The desire of Ukrainians to improve their material situation is always a motive for migration, directly economic, both within the country and abroad. Since income from employment is the main component of financial status, labor migration is most characteristic of residents of low-wage countries. Today, it is very important to set the right vector in the direction of preserving and using the labor potential of Ukraine, for the development and uplifting of the economy as a whole. Results. Study of external migration of labor potential and determination of the consequences of social and psychological stress in families. To draw parallels between the level of actual unemployment of Ukrainians and changes in the real income of their families, as one of the reasons for the increase in external labor migration of the population. Conclusions. The importance of the implementation of direct functional duties of state authorities: promoting the creation of new jobs for the unemployed, preventing the mass exodus of young people and the able-bodied population, controlling and regulating the demographic crisis, combating unregulated migration.

Why does happiness respond differently to an increase vs. decrease in income?

The answer is that people's evaluations of their income situation are based on different considerations when the economy is expanding and when it is contracting. When, in the course of economic growth, incomes generally are rising, evaluations of one's own income—whether it is satisfactory –tend to be dominated by comparisons with the incomes of others—by “social comparison”. If one's income is just “keeping up with the Joneses”, happiness is unchanged. But in a recession, as incomes decline and people increasingly have difficulty satisfying consumption habits and fixed financial obligations acquired when incomes were higher, the benchmark for income evaluations shifts to comparisons with one's past experience– how current income compares with one's previous peak income. The greater the shortfall, the less one's happiness. The shift when income declines, from comparison with others to comparison with one's past experience, is typically forced on individuals by the growing pressure of meeting fixed financial obligations.There is thus an asymmetry in the psychological roots of income evaluations when income is rising vs. falling, and this causes a corresponding asymmetry in the response of happiness to income change. When income is rising and social comparison is the basis for evaluating one's income situation, changes in income have, on average, a nil effect on happiness. When income falls below its previous peak and past personal experience is the basis for evaluating one's income situation, happiness goes down and up with income.

Factors Associated with Work Performance and Mental Health of Healthcare Workers During Pandemics In Asia : a Systematic Review

COVID-19 is highly contagious and the transmission dynamics are associated with intercontinental spread. The pandemic’s short-term and long-term impact on healthcare worker’s mental health and well-being remains largely unknown. This systematic review used preferred reporting Items for Systematic Reviews and Meta-Analyses (PRISMA). The articles were searched from PubMed, the reviewers had screened 729 abstracts, 372 full-text publications, and ultimately included 11 systematic reviews. The review found ten factors associated with the work performance and mental health of healthcare workers in Asia, including experiencing feelings of anxiety, having inadequate support, depression, experiencing occupational stress, loneliness, lack of workplace preparedness, financial concerns associated with changes in income and daily living, fear of transmission, burnout/fatigue and sleep disturbance. This systematic review can be used as input for governments and employers as a reference to develop strategies to support healthcare workers’ mental health, well-being and work productivity.

Impact of Trifed on Livelihood Security of Tribal Households: A Special Reference to Nilgiris District, Tamilnadu

This paper has examined the changes in household income and employment patterns and has assessed the impact of TRIFED (Tribal Co-operative Marketing Development Federation of India)-an organization with a prime aim of economic upliftment among the scheduled tribes in the country by way of marketing tribal products which are the life source of tribals. The study covers the Nilgiris District of Tamilnadu on Purposive Sampling techniques by covering 180 households. The impact of TRIFED will focus on employment generation, income generation, asset creation, and future perspectives dealt with in the study. It was found that TRIFED covered all poor sections of the tribal society irrespective of caste, gender, or social order. It also observed that this organization enhances income as well as savings of households. Further, it was noticed that TRIFED has created income-generating activities among tribal peoples.

Household Consumption Function Based on Permanent Income Hypothesis: A Systematic Review

The Permanent Income Hypothesis was first proposed by Milton Friedman in the 1950s and has been an important theory in the field of macroeconomics. According to this theory, the spending behavior of individuals is based on their long-term average income rather than their current income. The theory posits that individuals adjust their spending patterns based on their expected lifetime income rather than temporary fluctuations in their income. Given the severe impact of COVID-19 on household consumption and income change, it becomes increasingly important to model household consumption. With this subject becoming increasingly significant, it is noteworthy to retrieve and report on the existing literature, especially within the context of explaining the Permanent Income Hypothesis (PIH) relevancy to model household consumption. This study will employ the PRISMA strategy in the systematic review of the existing literature. The finding from this review showed the literature found can be clustered into three (3) themes in answering the research questions and contributing to the existing body of knowledge in this domain. Finally, this systematic review will advance the literature and provide recommendations for policy formulation, as well as paving way for future studies within this context.

Effects of international trade on income revisited

This paper revisits the causal impact of international trade on income using a time‐variant instrument in a panel of counties between 1950 and 1995. In particular, in constructing the time‐varying instrument, it estimates the gravity model using the Poisson pseudo maximum likelihood (PPML) estimator. Trade has a significantly positive impact on income over the 1950–1970 period ‐the income elasticity of trade is between 0.35 and 0.50. However, air distance has not had any increasing effects on international trade since the 1970s. Therefore, the imputed trade from 1970 to 1995, used as an instrument, has little variance and should not have driven the change in income.

The Determinants of Inbound Tourism Demand in India: New Evidence from ARDL Co-Integration Approach

The research used the Autoregressive Distributive Lag (ARDL) model to examine the long- and short-term impact of changes in currency rates and global income on tourist demand in India employing monthly data from 2003 (1) to 2020 (12). We find that exchange rate volatility, global income, and tourism demand are all significantly interrelated. A 15% convergence to the long-run equilibrium path of tourism demand occurs in line with the pace of adjustment through the channel of global income and currency rate. Positive and substantial effects of rising global income are shown over the short and long terms. There is, nevertheless, a positive short-term relationship between currency depreciation and visitor numbers. Additionally, the Toda–Yamamoto method is used for Granger non-causality. The results point to a one-way causal relationship between the currency exchange rate and the number of visitors. It has also been shown that there is a causal relationship in both directions between the demand for tourism and global GDP. The nation is in a special position due to its location, physical characteristics, cultural heritage, and other comparative advantages. According to the findings, a stable currency rate and global income are the two most important factors in increasing tourist interest in India.

The social scar of the pandemic: Impacts of COVID-19 exposure on interpersonal trust

This paper employs a difference-in-differences strategy to examine the causal effect of exposure to the COVID-19 pandemic on interpersonal trust amidst zero-COVID policies in China. Using a nationally representative panel survey, we find that COVID-19 exposure leads to a decrease in the levels of generalized trust. We also show that the change in interpersonal trust varies across domains. Specifically, COVID-19 exposure significantly decreases trust in parents, neighbors, and local government officials, but has small and insignificant effects on trust in doctors, strangers, and Americans. Empirical tests suggest that changes in income and physical health status are not likely to be potential channels. We provide some evidence for the mechanism of deteriorated mental health status and pessimistic expectations.

The increase in the elasticity of substitution between capital and labour: a repeated cross-country investigation

ABSTRACT The economics literature emphasizes the importance of the elasticity of substitution between capital and labour in several economic contexts. However, analyses of the effect of the elasticity of substitution on the direction of technological change are often overlooked. Most assessments of the direction of technological change rely on a Constant Elasticity of Substitution (CES) production framework. This strand of empirical work considers the elasticity of substitution between capital and labour as a deep and fixed parameter. In this article, we show that the change in the elasticity of substitution that has occurred in recent decades might be an alternative source of change of factor income shares in addition to changes in factor-augmenting technological change. We construct a theoretical environment in which the elasticity of substitution is determined endogenously by the capital share and capital intensity. Rolling window estimates and non-linear estimation methods show that the elasticity of substitution in nine OECD economies observed between 1950 and 2017 was not constant and that, in fact, in the latter half of the 1970s, the elasticity of substitution increased, in the presence of labour-augmenting technical change.