Income Distributions In Terms Research Articles

The role of islamic economy in reduction of social injustice and sustainable development goals

“Sustainable Development” is a development model that can meet the needs of today's generations without sacrificing its ability to meet the needs of future generations, has taken its place in the world’s agenda towards the end of 20th century and with the International agreements signed in the 1990s became a worldwide implementation plan. Today, the most serious problems faced by people are the income injustice and increase of poverty. During the rapid change process that began in the 1980s, the problem of income distribution was no longer perceived as an ordinary economic problem, but as a political and social problem. Economic and social policies implemented since the 1950s have not been able to solve the problems and have made many problems more apparent. In short, in today's world, an unbalanced structure has emerged, where financial prosperity is increasing and social welfare is gradually diminishing. Using a socioeconomic approach and environmental relations together, development strategies can be efficient in responding to today's needs, but can lead to serious harm in destroying the needs of future generations. Moreover, since there is no clear approach to the limits of economic growth, the dynamics of this growth are uncertain. Therefore, all humanity needs sustainable development strategies. This study addresses three main problems (i) what are the answers to a more livable life expectancy that will meet the needs of everyone and every sector based on the understanding that the Islamic economy has a future-oriented understanding, (ii) what are the strategies for eliminating injustices in income distribution in terms of Islamic economy? (iii) what are the perspectives of Islamic economy that will be put forward in order to develop the concept of Sustainable Development? In this study, considering the fact that the Islamic economy has an understanding of the future, it will address the inequalities in income distribution and the strategies that will be put forward for the formation of sustainable development understanding, which will meet the needs of everyone and all segments and will provide answers to a more livable life expectancy. In order to approach the injustices in income distribution and sustainable development strategies from the perspective of Islamic economy, it is necessary to put forward political stability on this issue, to revise the ideas put forward to date, to present complementary proposals by identifying missing aspects of current developments and to identify the current threats and opportunities. This study will reveal the social vision of the Islamic economy by addressing all aspects of income injustice and sustainable survival strategies.

Doing Rawls Justice: Evidence from the PSID

AbstractDistributive value judgments based on the ‘origins’ of economic inequalities (e.g. circumstances and responsible choices) are increasingly evoked to argue that ‘the worst form of inequality is to try to make unequal things equal’. However, one may reasonably agree that distributive value judgments should also account for the ‘consequences’ of economic inequalities in such a way as to (i) improve economic efficiency and (ii) prevent from subordination, exploitation and humiliation. In this way of thinking, by evoking the well-known Rawlsian ‘Fair Equality of Opportunity’ and ‘Difference Principle’, the author proposes a pragmatical non-parametric estimation strategy to compare income distributions in terms of Rawlsian inequity and its contribution to overall inequality. The latter methodology is applied to PSID data from 1999 to 2013 and compared with existing empirical evidences on Roemer’s (A Pragmatic Theory of Responsibility for the Egalitarian Planner, 1993, andEquality of Opportunity, 1998) inequality of opportunity. Remarkably, Rawlsian inequity is found between 56% and 65% of the overall income inequality, with an increasing pattern originating from the recent economic crisis.

An axiomatic approach to the measurement of poverty reduction failure

A poverty reduction failure index is a measure of the extent of inability of a society to reduce its poverty level. This paper develops an ordering for ranking alternative income distributions in terms of poverty reduction failures. The ordering can be easily implemented by using the generalized Lorenz or the Three I's of poverty (TIP) curve dominance criterion. We also characterize an existing index of poverty reduction failure by using an axiomatic structure.

Comparison of concentration for several families of income distributions

In this paper, we consider the comparison of parametric families of income distributions in terms of inequality and relative deprivation, which are two important aspects for understanding the concentration of incomes in a population. Based on inequalities of their parameters, we give sufficient, and in some cases necessary, conditions to show when a parametric model exhibits more deprivation and inequality than another parametric model. These comparisons are carried out in terms of the starshaped, expected proportional shortfall, and Lorenz orders.

Back to Bismarck? Shifting Preferences for Intragenerational Redistribution in OECD Pension Systems

Using a sample of 20 OECD countries it is shown that the majority of countries decreased the level of intragenerational redistribution in the first pillar of their pension systems, though the evidence is weak in statistical terms. We find strong correlations between changes of the so-called Bismarckian factor and changes of the generosity of the pension system, the shape of the income distribution in terms of its first three central moments and life expectancy. An economic laboratory experiment confirms that these variables could have been causal for the observed change.

A characterization of income distributions in terms of generalized Gini coefficients

Most commonly used parametric models for the size distribution of incomes possess only a few finite moments, and hence cannot be characterized by the sequence of their moments. However, all income distributions with a finite mean can be characterized by the sequence of first moments of the order statistics. This is an attractive feature since the generalized Gini coefficients of Kakwani (1980), Donaldson and Weymark (1980, 1983) and Yitzhaki (1983) are simple functions of expectations of sample minima. We present results which streamline these characterizations motivated by Aaberge (2000).

The Lorenz-ordering of Singh-Maddala income distributions

This paper gives a complete characterization of the family of Singh–Maddala income distributions in terms of Lorenz-ordering, in the sense that given any two distributions from this family, we show how to determine from the respective parameters whether or not one Lorenz-dominates the other.

Size and distribution of incomes as determinants of social welfare

The paper is concerned with the relationship between the inequality of income distributions and the social welfare they imply. Starting-point is an ordering of income distributions in terms of inequality. Based on explicit value judgments about the trade-off between size and distribution of incomes an ordering in terms of social welfare is derived. The welfare functions representing this ordering allow a size-distribution split up. It is shown that the procedure can be reversed. This ordinal approach is considerably more flexible and less arbitrary than most methods proposed in the literature.

A Note on Lindahl's Theory of Distribution

SUMMARYIt has become customary to dichotomize research results in functional income distribution in terms of neo‐classical vs. neo‐Keynesian theories with appropriate footnotes referring to fringe theories and distinguished predecessors. In this note the latter set is enlarged! Erik Lindahl's masterly contribution to this subject is presented in a generalized version of a Kaldor‐Pasinetti model. In Penning Politikens Medel (1930) Lindahl poses the question of how savings will be adjusted to equilibrium with a higher level of investment which, in turn, has been caused by a lowering of the rate of interest. The equilibrium level is attained, in a characteristically Kaldor‐Pasinetti way, by a redistribution of incomes.

Resource allocation in a general equilibrium model of production under uncertainty

The purpose of this paper is to examine the implications of uncertainty for resource allocation, real income, and income distribution in terms of a simple two-sector general equilibrium model of a small country where uncertainty is introduced by assuming that production in one sector occurs in a stochastic environment. Assuming decreasing risk aversion, we show that an increase in uncertainty causes the movement of the resources away from the uncertain sector, a decline in expected real income, and a shift in the distribution of income against the factor employed intensively by the uncertain sector.