Analysis Of Income Distribution Research Articles

On social inequality: Analyzing the rich–poor disparity

From the Old Testament to the Communist Manifesto, and from the French Revolution to the Occupy Wall Street protests, social inequality has always been at the focal point of public debate, as well as a major driver of political change. Although being of prime interest since Biblical times, the scientific investigation of the distributions of wealth and income in human societies began only at the close of the nineteenth century, and was pioneered by Pareto, Lorenz, Gini, and Pietra. The methodologies introduced by these trailblazing scholars form the bedrock of the contemporary science of social inequality. Based on this bedrock we present a new quantitative approach to the analysis of wealth and income distributions, which sets its spotlight on the most heated facet of the current global debate on social inequality—the rich–poor disparity. Our approach offers researchers highly applicable quantitative tools to empirically track and statistically analyze the growing gap between the rich and the poor.

How does private health insurance affect dental care utilization?

Objectives: This study discussed dental care utilization efficiency and equity from the perspective of private health insurance policy using the 2011 Korea Health Panel dataset. Methods: A total of 10,577 subjects, aged 20 years or older, were selected from a larger sample (N=18,256). The study conducted a two-part model analysis to determine the impact of private health insurance on utilization and amount of dental care. Results: Average monthly payment of private health insurance is 76,727 KRW. Analysis of average monthly fees and income distribution by quartile showed that higher income groups pay proportionally more for private health insurance. The highest income group was 3.82 times more likely to have private health insurance than the lowest income group. Those with private health insurance coverage had a higher probability of using dental care but were not more likely to use a greater number of dental services. Conclusions: Based on these empirical findings, a guarantee of health care system and policy equity and efficiency should be established for changes in private health insurance.

Spatial analysis of tourism income distribution in the accommodation sector in western Uganda

In the ongoing debate on the connection between tourism and poverty alleviation, tourism is often presented as a tool for poverty alleviation and the improvement of socio-economic conditions of rural communities in developing countries. Findings of prior research suggest that nature-based tourism has a positive impact; however, existing models tend to understate the spatial differentiation of impacts in different contexts. Little is known about the spatial range and scale of the benefits from tourism development at a certain location. Previous studies have shown that employment in accommodation facilities is responsible for the largest share of pro-poor impact in Ugandan tourism. This paper focuses on the spatial dimension of the impact of employment in the tourism accommodation sector on the local livelihoods, with nature-based tourism around Kibale National Park (KNP) in western Uganda as a case study. Semi-structured interviews with employees were undertaken to delineate the geographical sphere of influence (SoI) of tourism employment in the accommodation sector. Results show that tourism accommodations recruit from a small geographical sphere of influence (5–10 km) in rural settings, while in urbanized settings the sphere of influence is larger (30–40 km). Understanding spatial differences of the distribution of tourism benefits in developing countries can lead to better informed policies on poverty alleviation. Policies to promote tourism as a poverty alleviation strategy have shown some successes, but there is a danger that the spatial scale of the impact is smaller than anticipated. Furthermore, for more than 80% of households, tourism is the principal source of income. In addition, tourism employment can provide initial capital for supplementary activities, which gain in importance to the extent that their profits surpass the income from tourism employment. Tourism employment does not represent a final perspective but a stage for gathering resources and skills.

On the short-run relationship between the income distribution-growth and debt-growth regimes

This paper examines the short-run relationship between the income distribution-growth and debt-growth regimes using a simple, post-Keynesian, demand-driven model. While mechanisms of wage-led and profit-led growth have been revealed, their relationship with debt-led and debt-burdened growth is yet to be clarified, because arguments on these growth regimes were developed separately. This paper shows that the growth regimes transform as the regime-switching parameters in the IS balance change. By way of theoretical analysis, this paper presents some important implications for (i) the possibility of the combination of growth regimes; (ii) the features of post-Keynesian economic analysis of income distribution, debt, and demand-led growth, which sharply contrast with the basic neo-classical theory; and (iii) theoretical validation of recent empirical results. Moreover, this paper also suggests some policy implications or lessons for the combination of economic growth regimes.

More equal but not so fair: an analysis of Brazilian income distribution from 1995 to 2009

This study measures unfair inequality in Brazil between 1995 and 2009. To achieve that, we used the statistical tool developed by Almås et al. (J Public Econ 95:488–499, 2011) and the concept of “responsibility-sensitive” fairness proposed by Bossert (Math Soc Sci 29:1–17, 1995), Konow (J Econ Behav Organ 31(1):13–35, 1996) and Cappelen and Tungodden (Fairness and the proportionality principle, Discussion paper SAM 31/2007. Norwegian School of Economics and Business Administration, 2007). The results indicate that the fairness level in Brazil remained unchanged throughout the analyzed period.

Seidl, C., Pogorelskiy, K. and Traub, S.: Tax progression in OECD Countries. An integrative analysis of tax schedules and income distributions

Seidl, C., Pogorelskiy, K. and Traub, S.: Tax progression in OECD Countries. An integrative analysis of tax schedules and income distributions

A. C. Pigou's rejection of Pareto's law

In Pigou’s Wealth and Welfare, as well as in each of the four editions of his The Economics of Welfare, one chapter is dedicated entirely to the critical assessment, and ultimate rejection, of ‘Pareto’s law’ of income distribution. This note highlights Pigou’s uncorrected misreading of a critical aspect of Pareto’s analysis of income distribution; illustrates what his criticisms of Pareto’s law reveal about Pigou’s objectives for welfare economics; and indicates how Pareto’s analysis of income distribution could have been criticised in a manner that is consistent with Pigou’s objectives for welfare economics.

INCOME DISTRIBUTIONS IN INPUT-OUTPUT MODELS

The analysis of income distribution (ID) has traditionally been of prime importance for economists and policy-makers. However, the standard input–output (I–O) model is not particularly well equipped for studying current issues such as the consequences of decreasing access to primary inputs or the effects of specific redistributive policies. This paper addresses this gap in the existing literature. We propose that IDs can excellently be studied by restructuring the I–O relations. A new coefficients matrix is defined, the so-called augmented input coefficients matrix. This matrix is the sum of the intermediate input coefficients matrix and newly constructed matrices of sector-specific input coefficients that represent the existing distribution of income. We show that shifts in the distribution can be modelled by attributing weights to these matrices and vary these according to system-specific rules. Numerical illustrations based on the existing literature are given throughout the paper.

Estimation of Concentration Measures and Their Standard Errors for Income Distributions in Poland

Measures of concentration (inequality) are often used in the analysis of income and wage size distributions. Among, them the Gini and Zenga coefficients are of greatest importance. It is well known that income inequality in Poland increased significantly in the period of transformation from a centrally planned economy to a market economy. High income inequality can be a source of serious problems, such as increasing poverty, social stratification, and polarization. Therefore, it seems especially important to present reliable estimates of income inequality measures for a population of households in Poland in different divisions. In this paper, some estimation methods for Gini and Zenga concentration measures are presented together with their application to the analysis of income distributions in Poland by socio-economic groups. The basis for the calculations was individual data coming from the Polish Household Budget Survey conducted by the Central Statistical Office. The standard errors of Gini and Zenga coefficients were estimated by means of the bootstrap and the parametric approach based on the Dagum model.

The distribution of full income in Greece

PurposeThe purpose of this paper is to examine the distributional implications of using full income instead of disposable income in the analysis of economic inequality. For that purpose the authors employ a very extensive list of noncash incomes with the aim of examining the distributional effects of noncash incomes and reassessing the level and structure of inequality under a comprehensive definition of income.Design/methodology/approachThe study employs the microdata of the 2004/2005 Greek Household Budget Survey. The value of non‐monetary components was estimated using the appropriate statistical methods and econometric techniques. Tools of income distribution analysis were utilized for assessing the distributional consequences of adopting an extended definition of income.FindingsThe results indicate that both private and public noncash incomes are far more equally distributed than monetary income, but the inequality‐reducing effect of publicly‐provided services is stronger. Noncash incomes appear to accrue more heavily to younger and older individuals.Research limitations/implicationsThe analysis uses the same equivalence scales for the analysis of both monetary income and full income. This treatment may be open to criticism in the case of in‐kind public transfers. Due to data limitations the authors do not take into account home‐produced services, as well as several in‐kind transfers such as the provision of elderly care.Practical implicationsThe study argues in favor of moving beyond disposable income for measuring inequality and for the purposes of social policy design.Originality/valueEven if several studies take into account particular noncash items, there is an important void in the distributional analysis of full income.

Income distribution and the trade cycle in the 'years of high theory'

Résumé Durant la courte période qui précède la Seconde Guerre mondiale, l’analyse macroéconomique s’est située sur le terrain de la concurrence imparfaite. Au cours de ces « années de haute théorie », pour reprendre un terme utilisé par Shackle, l’articulation des analyses de la répartition du revenu et des cycles est à l’ordre du jour. Le présent article discute cet épisode du point de vue théorique en prenant pour point de départ les travaux qui ont tenté de relier l’analyse des imperfections de marché à celle de la répartition du revenu. L’étude explicite dans une première partie les liens entre imperfections des marchés des biens et analyse de la répartition du revenu. Dans une seconde partie, l’analyse se centre sur le rôle des effets de répartition au sein des théories des cycles développées à la fin des années 1930. Deux modélisations sont examinées : celle de Kalecki (1939) et celle de Kaldor (1940), la première fondée sur une fonction d’investissement non linéaire, la seconde fondée sur une fonction d’épargne non linéaire. JEL classification: B22, E12, E32, D33, D43

Game Analysis of Income Distribution between Public and Private Parties in the PPP Construction Pattern of the Security Housing

The construction fund of the security housing is in shortage, the financing way is single and not smooth. In order to effectively solve the capital bottleneck problems and to speed up the construction progress of the security housing, this paper introduces PPP pattern into the construction of the security housing. Based on the perspective of game theory, analyses the bargaining model during the process of income distribution between the government and the private agency in the construction of the security housing，then puts forward some related suggestions to promote the construction of the security housing in PPP-pattern.

Game Analysis of Income Distribution between Public and Private Parties in the PPP Construction Pattern of the Security Housing

Game Analysis of Income Distribution between Public and Private Parties in the PPP Construction Pattern of the Security Housing

Entropies of Negative Incomes, Pareto-Distributed Loss, and Financial Crises

Health monitoring of world economy is an important issue, especially in a time of profound economic difficulty world-wide. The most important aspect of health monitoring is to accurately predict economic downturns. To gain insights into how economic crises develop, we present two metrics, positive and negative income entropy and distribution analysis, to analyze the collective “spatial” and temporal dynamics of companies in nine sectors of the world economy over a 19 year period from 1990–2008. These metrics provide accurate predictive skill with a very low false-positive rate in predicting downturns. The new metrics also provide evidence of phase transition-like behavior prior to the onset of recessions. Such a transition occurs when negative pretax incomes prior to or during economic recessions transition from a thin-tailed exponential distribution to the higher entropy Pareto distribution, and develop even heavier tails than those of the positive pretax incomes. These features propagate from the crisis initiating sector of the economy to other sectors.

Structural VAR Analysis of Debt, Capital Accumulation, and Income Distribution in the Japanese Economy : A Post-Keynesian Perspective

Structural VAR Analysis of Debt, Capital Accumulation, and Income Distribution in the Japanese Economy : A Post-Keynesian Perspective

Analysis of China's Unequal Income Distribution from the Perspective of Functional Income Distribution

中国收入分配的不平等在很大程度上表现为功能性收入分配的不平等，即随着经 济的发展,工资性收入占国民收入的比例越来越小，而现阶段中国二元经济结构下的 无限劳动力供给则是其主要原因。在一个具有凯恩斯主义特征的非均衡动态模型框架 下，我们的分析表明，劳动力的无限供给，不仅使工资无法对劳动力市场的供求状况 进行反应，而且使劳动生产率和物价变化对工资的影响也不敏感。这意味着，当存在 着劳动生产率的提高或由经济增长所带动的物价上涨时，工资的提高不够显著，从而 由经济增长或劳动生产率的提高所带来的利益大部分转化为利润而非工资。基于此， 要彻底扭转中国收入分配恶化趋势，根本途径仍然是保持经济的高速增长，加快工业 化和城市化进程，从而使农村剩余劳动力能够尽快被吸收。 关键词: 功能性收入 二元经济 劳动力供给 China's unequal income distribution is to a large extent expressed in unequal functional income distribution, that is, as China's economy develops, the share of wage income in national income falls. The unlimited supply of labor under China's current dual economic structure is the major reason for this. In a disequilibrium dynamic model framework with Keynesian features, empirical analysis shows that the unlimited supply of labor not only prevents wages from responding to supply and demand situation in the labor market, but also makes them insensitive to labor productivity and price changes. This suggests that when there is a rise in labor productivity or prices following economic growth, the rise in wages may not be sufficiently marked. The benefits derived from economic growth or labor productivity increases have been, to a very large extent, converted into profits and not wages. Therefore, if we are to reverse China's worsening income distribution, our fundamental path should remain the maintenance of high‐speed growth and the acceleration of urbanization and industrialization so that surplus rural labor can be absorbed as soon as possible.

Prezzi e distribuzione del reddito: una nota

After a brief critical evaluation of the main non-mainstream lines of analysis of income distribution (Kaldor’s and related models connecting income distribution to growth, Sraffa’s Keynesian suggestion of a link between the interest rate and the rate of profits, the Kaleckian degree of monopoly), the paper suggests to deal with income distribution not by looking for the determination of an equilibrium point on the wage-profit frontier, but as a dynamic-evolutionary process. Sylos Labini’s contribution is illustrated as an example of this approach, and a scheme for co-ordinating an interrelated group of analyses joining theoretical and applied investigation is suggested.

Income Distribution Analysis of Collaborative Forest Management Programme in Mt. Elgon National Park, Uganda: Dual Action for Poverty Alleviation and Environment Management

Income Distribution Analysis of Collaborative Forest Management Programme in Mt. Elgon National Park, Uganda: Dual Action for Poverty Alleviation and Environment Management

An Empirical Analysis of Income Distribution and Demand Formation Pattern of the Japanese Economy Using Vector Autoregressive Model

An Empirical Analysis of Income Distribution and Demand Formation Pattern of the Japanese Economy Using Vector Autoregressive Model

Does Size Matter? The Impact of Changes in Household Structure on Income Distribution in Germany

In Germany, two observations can be made over the past 20 years: First, income inequality has been constantly increasing while, second, the average household size has been declining dramatically. The analysis of income distribution relies on equivalence-weighted incomes which take into account household size. Therefore, there is an obvious link between these two developments. The aim of the paper is to quantify how the trend towards smaller households has influenced the change in income distribution. In order to do so, we are using a decomposition of changes in inequality measures over time allowing for a separation between wage and demographic effects respectively. We propose similar decompositions for the change in poverty and richness as well and compare them with results that were obtained by a re-weighting procedure. Our results show that the income gap would also have increased without the demographic trend. But its level would be lower than it actually is. In addition, the demographic effect turns out to be larger for incomes before tax and benefits.