Model Of Income Distribution Research Articles

The debate about Sraffian Supermultiplier Model and the future of heterodox growth models

ABSTRACT This paper aims to present the recent debate about Sraffian Supermultiplier Model (SSM), that gained notoriety in the academic environment after the controversy between Peter Skott (2016) and Marc Lavoie (2016, 2017) on the specification of the investment function of the Neo-Kaleckian models of income growth and distribution. Lavoie used the SSM model as an attempt to rescue the Neo-Kaleckians models of the devastating criticism made by Peter Skott (2010) regarding the specification of the investment function. In this context, we will not only argue that this rescue operation was not successful, but we will also question the capacity of SSM models to serve as an “alternative closure” for heterodox models of income growth and distribution, due to three fundamental shortcomings of the SSM approach, which are: (i) the hypothesis that the normal degree of utilization of the productive capacity is an exogenous variable, (ii) that investment in capacity expansion is totally endogenous; and (iii) the applicability of this approach out of a closed economy framework. We will also argue that the Kaldorian models of growth, which are one of the theoretical foundations of the so-called Developmentalist Macroeconomics, and stock-flow consistent models (SFC) seem to be much more promising alternatives for the development of heterodox theories of growth and income distribution.

A Bayesian Model of Income Distribution

A Bayesian Model of Income Distribution

Analysis of Household Income in Poland Based on the Zenga Distribution and Selected Income Inequality Measure

AbstractResearch background:A lot of research has been directed at describing empirical distributions by using a theoretical model. In the literature there are proposals for various types of mathematical functions. In 2010 Zenga proposed a new three-parameter model for economic size distribution which possesses interesting statistical properties which can be used to model income, wealth and financial variables.Purpose:The aim of this paper is to apply the Zenga model to income distributions in Poland by voivodeship.Research methodology:The basis for the calculations presented in the paper has been based on the individual data coming from a random sample obtained within a Household Budget Survey conducted by the central Statistical Office in the year 2014. The parameters estimates of the Zenga distribution were obtained by means of the D’Addario’s invariants methods, mainly with the Pietra index.Results:The results of the conducted approximations, presented in the paper confirmed the good consistency of the Zenga distribution with the empirical income distribution in Poland, both in total and for households.Novelty:The study contributed to the application of a new three-parameter income distribution model to describe income distributions in Poland.

Model of income distribution on the basis of a finite functional sequence and its application for inequality analysis

The paper develops the results presented in the author's previously published articles on the elaboration of a new model of income distribution described by a finite functional sequence. The model provides a good accuracy of approximation of the distribution of income for equal groups of the population that is confirmed by the results of empirical studies and is justified theoretically. The introduction of a new indicator of inequality that is correlated with Gini coefficient as well as with the quintile and decile dispersion ratios makes it possible to estimate theoretically the income shares of 20 and 10% groups (quintiles and deciles) for different levels of inequality. The results obtained allow identifying the specific features of changes in the share of income of these groups with the growth of inequality. The model also makes it possible to consider certain ratios between the incomes of some population groups that are typical of different inequality levels as well as to obtain for them an analytical expression; for example, such expression is obtained for the Palm ratio. These ratios can serve to some extent as some normatives for the development of the inequality reducing policy. The developed model allows also justifying the optimal (harmonious) level of inequality. In the annex the results of the estimation of the new inequality indicator for 18 countries are given.

Operation optimization and income distribution model of park integrated energy system with power-to-gas technology and energy storage

Power-to-gas (P2G) technology is considered as a new approach for clean energy consumption and energy conversion. However, because this technology must be combined with other energy systems to build a stable energy system, a reasonable income distribution method is necessary to guarantee this integration. Firstly, the operation optimization model of the park integrated energy system (PIES) and park independent energy system (PINES) with P2G are constructed for the first stage optimization, with the objective of maximizing net income. Secondly, the energy system performance evaluation indicators are developed to assess the system quantitatively in terms of the economic and environmental aspects. Thereafter, the income distribution models based on Shapley value and the improved Shapley value with operational risk factor are created, and the total income is optimally distributed at the second stage based on the first-stage optimization results. Finally, an industrial park in a province of China is selected for case analysis. The results show that (1) PIES can complement different systems, integrate the demands in heat, electricity, and gas, while realizing the electricity-gas-heat/electricity conversion and heat-electricity complementarity. (2) Income distribution using an improved Shapely value method is proposed, it overcomes the one-sidedness of transaction volume and lack of differences among participants, reflects the actual operational risk and the degree of contribution of participants to the whole system, and promotes the incentives of cooperation. (3) Based on the improved income distribution model, the income of the PS, P2G, and HS are redistributed. The income of P2G increased by ¥7,450, which reflects the important collaborative value of P2G. The willingness of system cooperation increased by 742.392%. Therefore, the proposed operation optimization and income distribution model can enhance the incentives of participants want to cooperate under the premise of ensuring the maximum net income of the PIES. Moreover, it can be used as reference for the formulation of an optimal operation plan and income distribution of the complex energy system and it can provide a way to promote clean energy production. • The role of P2G as a new energy conversion way is studied. • The two-stage optimization model is constructed. • The first stage is operational optimization. • The second stage is income distribution. • The improved Shapley value method is applied in park integrated energy system.

Entropic Divergence and Entropy Related to Nonlinear Master Equations

We reverse engineer entropy formulas from entropic divergence, optimized to given classes of probability distribution function (PDF) evolution dynamical equation. For linear dynamics of the distribution function, the traditional Kullback–Leibler formula follows from using the logarithm function in the Csiszár’s f-divergence construction, while for nonlinear master equations more general formulas emerge. As applications, we review a local growth and global reset (LGGR) model for citation distributions, income distribution models and hadron number fluctuations in high energy collisions.

A two-sector Kaleckian model of growth and distribution with endogenous productivity dynamics

This study extends a two-sector Kaleckian model of output growth and income distribution by incorporating endogenous labour productivity growth. The model is composed of investment goods and consumption goods production sectors. The impact of a change in wage and profit shares on capacity utilisation and output growth rates at the sectoral and aggregate levels are identified. The study reveals short-run cyclical capacity utilisation rates and productivity growth dynamics. Even if the short-run steady state is stable, the capital accumulation rate in the consumption goods sector must decrease more than that in the investment sector for long-run stability. When simultaneous rises in profit shares in both the sectors affect long-run aggregate economic growth differently at a steady state, the distributional interests between the same class in different sectors may hamper the long-run economic growth. A policy message is that the effect of income distribution on industrial output growth is not always beneficial. These phenomena are specific to two-sector models and cannot be observed when using conventional aggregate growth models.

A Neo-Kaleckian model of skill-biased technological change and income distribution*

This article proposes a macrodynamic model that takes into account the joint determination of intra-working-class income distribution and knowledge-intensive technological change. Our model highlights two opposing effects of technological change at play: (i) technological innovation promotes a positive structural change and hence boosts net exports and output growth; (ii) technological change, on the other hand, disproportionately affects unskilled workers, which worsens the intra-working-class income distribution and slows down economic growth. Therefore, our model demonstrates that the net impact of technological change on capital accumulation and output growth is ambiguous and hence is a parametric question. Lastly, we show that income transfer and public investments in higher education may be of paramount importance to alleviating the unwanted effects of a contractionary wave of technological change and so promoting a sustained economic recovery.

The French Ligue 1 TV Rights Selling Model – Historical Study

In 1996, the Lega Calcio deal with RAI expired and the league signed deal with four media groups for 11 television packages, generating 100 million euro for the clubs. In mid 2000s the tv rights income reaches a 873 million euro for the 2005-06 season, with the Serie A tv rights annual income to gradually increase from a 844 million euro for the 2009-10 season to an amazing approximate 1,4 billion euro for the 2018-21 season. All these years Lega Calcio experimented a lot in the designing and application of a tv rights selling mechanism and its accompanied tv rights income distribution model. The study could be used by several professional football leagues, with the Greek Superleague being one of them, in order its higher management to evaluate the actions LFP undertook all these years and how these actions affected could be followed.

The Italian Serie A TV Rights Selling Model – Historical Study

In mid 2000s the tv rights income reaches a 873 million euro for the 2005-06 season, with the Serie A tv rights annual income to gradually increase from a 844 million euro for the 2009-10 season to an amazing approximate 1,4 billion euro for the 2018-21 season. All these years Lega Calcio experimented a lot in the designing and application of a tv rights selling mechanism and its accompanied tv rights income distribution model. The Greek Superleague followed similar paths with Lega Calcio, when for many years in early 2000s clubs could exploit their tv rights by themselves. Even later, in late 200s and after the establishment of SL and with the collective selling mechanism in use, this mechanism didn’t include all participating clubs. The study aims to show how could Greek Superleague higher management staff learn from the Serie A tv rights deal history and follow the league’s recent tv rights optimal collective selling practices.

A model of industrialization and rural income distribution

PurposeThe purpose of this paper is to explore how the processes of (de)industrialization and rural income distribution interact with each other and their implications for economic growth and welfare.Design/methodology/approachThis paper takes a dynamic general-equilibrium and theoretical approach.FindingsThe author develops a dynamic general-equilibrium model to analytically characterize how (de) industrialization interacts with rural income distribution, and also explores the implications for aggregate GDP growth, the evolution of rural income distribution as well as welfare. Redistributive policies are shown to sometimes enhance GDP and welfare by boosting the production of the goods with high desirability (or productivity) but constrained by depressed demand due to income inequality, and internalizing the dynamic impact of private production and consumption decisions on future public productivities.Practical implicationsThe research suggests that rural income distribution and (de)industrialization are intrinsically related, so policies or institutional distortions on one process would, in general, affect the other. Redistributive policies are shown to sometimes enhance GDP and welfare by enhancing industrialization.Originality/valueThe paper contributes to the literature of industrialization and structural change at large in several aspects. First, a key novel feature of our model is that the Engle’s law is captured by a quasi-linear utility function, which differs from the standard non-homothetic functions in this literature. Second, our paper contributes to the literature of structural change by showing how (de)industrialization works when sectorial productivity changes are endogenous. The paper also sheds light on the determination of rural income distribution and its evolution in the process of structural change and rural-urban migration.

Bayesian inference for the finite gamma mixture model of income distribution

The income distribution model has provided an important aspect of economic inequality analysis. The determination of income inequality can be assisted by modeling a probability distribution of income which can be modeled by both parametric and nonparametric method. In the parametric perspective, the finite mixture distributions can perform a data-driven capability to model this income pattern of distributions which have particularly long-tailed, right-skewed and multimodal characteristics. The gamma distribution which has been widely used for estimating income distribution is used to develop the finite gamma mixture model which means the gamma distribution in each mixture component of the model. Bayesian approach pairs up with the Markov Chain Monte Carlo (MCMC) which has a valid inference without depending on normality asymptotic condition is used to estimate this finite mixture model. In this paper, the household income which was constructed based on the Indonesian Family Life Survey (IFLS) 2014-2015 data was utilized to show the work of the Bayesian inference performance through MCMC algorithm in estimating the parameter of the finite gamma mixture model. The goodness-of-fit comparisons of proposed finite gamma mixture models were made based on the widely applicable information criteria (WAIC).

A spatial evolutionary version of the ultimatum game as a toy model of income distribution

In the standard ultimatum game, two individuals, usually called the proposer and the responder, must agree on how to split a certain sum of money. The proposer makes an offer. If the responder takes this offer, the money is divided as proposed; however, if the responder rejects it, they receive nothing. In this work, a spatial evolutionary version of this game is used to investigate the income distribution in a society, as a consequence of employer-employee bargaining process. The two main modifications introduced here are: (1) the money does not disappear when an offer is not taken; (2) the survival of the players depends on the acceptance of proposals. There are four kinds of players, because each individual adopts one of two strategies as a proposer and one of two strategies as a responder. By performing numerical simulations, the long-term dynamics is determined and the Gini coefficient is computed in function of the model parameters. The results are interpreted from a socioeconomic perspective.

A System Dynamics Model of Income Distribution between Labor and Capital for Turkey

A System Dynamics Model of Income Distribution between Labor and Capital for Turkey

Extremal properties of the Theil and Gini measures of inequality

Two popular inequality measures used in the study of income and wealth distributions are the Gini (G) and Theil (T) indices. Several bounds on these inequality measures are available when only partial information about the distribution is available. However the correlation between them has been less studied. We derive the allowed region for the joint values of (G, T), for both continuous and discrete distributions. This has the form of a lower bound for T at given G. There is no corresponding upper bound, and T can be made as large as desired for given G by choosing an appropriate form of the Lorenz curve. We illustrate the bound for several parametric models of income distribution and Lorenz curves frequently used in the income distribution literature.

FUNCTIONAL INCOME DISTRIBUTION AND GROWTH IN SOUTH KOREA: A POST KEYNESIAN ECONOMETRIC ANALYSIS

The aim of this article is to analyze the short-term impact of functional income distribution on aggregate demand and its components in South Korea within a post Keynesian framework, in which demand regime of an economy is either wage or profit-led. The article firstly portrays the structural change and the macroeconomic performance of South Korea, and then presents the evolution of the labor income share in the country. The article follows with the presentation of the theoretical model employed for the analysis of the demand regime in the country and offers a survey of the empirical literature of the post Keynesian models of income distribution and growth. Then takes place the econometric analysis and the article proceeds with the evaluation of the results and concludes. The econometric investigation shows that, over the period 1970–2011, the growth regime of the domestic economy is wage-led, while that of the total economy is profit-led. The results are partially in contradiction with those already found in the literature and point that pro-labor growth policies are not viable within the current structure of the South Korean economy in the short run.

Digital economy and the models of income distribution in the society

Digital technologies, robotic automation and artificial intelligence are becoming the main drivers of technological and economic development. In this regard, it is quite natural that the demand for justification of such threats for the employment market appears, and also the question arises whether it is possible to foresee and analyze the level of inequality and distribution of income in the society where the proportion of artificial intellectual systems in creating new costs will be exceptionally large.

The asymmetry of income distribution between stakeholders within the framework of industrial park structures

The purpose of this article is to prove the author‘s hypothesis about the formation of an asymmetry in the distribution of income of stakeholders in the industrial park structure, due to the increased impact of economies of scale on the activities of the residents of the park. In this article, the authors propose a model of income distribution, on the basis of which the prevailing role of the state as the beneficiary of the results of activity within the framework of the park structure was proved. It also indicates a clear asymmetry of income distribution, formed due to economies of scale between other stakeholders. The revealed characteristics can be claimed for the justification of concepts and other documents of a program nature in the formation of industrial park structures.

Study on Dynamic Joint Optimization of Inventory and Transportation Processes of Online Shopping Supply Chains Based on Shared-Savings Contracts

In this paper, inventory and transportation joint optimization can help reduce the logistics costs and improve logistics efficiency, and realize the optimal efficiency of the whole supply chain; shared-savings contracts is an effective way to achieve dynamic optimization between inventory and transportation, which is conducive to achieve mutual benefits for the participating parties and mobilize the enthusiasm of cooperation. This paper successively constructs a benefit model of policy-making bodies under inventory and transportation integrated optimization and an income distribution model of policy-making bodies under revenue sharing and a bargaining game process of inventory and transportation under the dynamic environment, and also verify its feasibility by numerical examples analysis.

A Comparison of Parametric Models of Income Distribution Across Countries and Over Time

The five-parameter generalized beta distribution and ten of its special cases are considered as models fore the size distribution of income. The models are fit to income data for 23 countries and various years - a total of 82 datasets. Of the models considered, the Weibull, Daagum and generalized beta of the second kind are best fitting of the models with two, three and four parameters for 62 percent, 84 percent, and 96 percent of the data sets, respectively. Increasing inequality with respect to pre-tax income is observed in most of the countries considered.