Private Income Research Articles

Does the elderly’s private pension ownership intensify aggregate equity demand? Empirical evidence in the US

ABSTRACT In this paper, we investigate how the old generation income structure affects aggregate equity purchases, using Flows of Funds Accounts and Survey of Consumer Finances. Our results suggest that the risk aversion that increases with age could be modified to incorporate the old’s pension ownership. In particular, private pension income to elder households are related to increased aggregate equity purchases, even considering other pension and all other income. In this sense, private pensions are a ‘stepping-stone’ to increased equity investment in US households.

Barriers and bridges for sustaining functional habitat networks: A macroecological system analysis of wet grassland landscapes.

This study aims at supporting the maintenance of representative functional habitat networks as green infrastructure for biodiversity conservation through transdisciplinary macroecological analyses of wet grassland landscapes and their stewardship systems. We chose ten north European wet grassland case study landscapes from Iceland and the Netherlands in the west to Lithuania and Belarus in the east. We combine expert experiences for 20–30 years, comparative studies made 2011–2017, and longitudinal analyses spanning >70 years. Wader, or shorebird, (Charadrii) assemblages were chosen as a focal species group. We used evidence‐based knowledge and practical experience generated in three steps. (1) Experts from 8 wet grassland landscapes in northern Europe's west and east mapped factors linked to patterns and processes, and management and governance, in social‐ecological systems that affect states and trends of wet grasslands as green infrastructures for wader birds. (2) To understand wader conservation problems and their dynamic in wet grassland landscapes, and to identify key issues for successful conservation, we applied group modeling using causal loop diagram mapping. (3) Validation was made using the historic development in two additional wet grassland landscapes. Wader conservation was dependent on ten dynamically interacting ecological and social system factors as leverage points for management. Re‐wetting and grazing were common drivers for the ecological and social system, and long‐term economic support for securing farmers’ interest in wader bird conservation. Financial public incentives at higher levels of governance of wetland management are needed to stimulate private income loops. Systems analysis based on contrasting landscape case studies in space and over time can support (1) understanding of complex interactions in social‐ecological systems, (2) collaborative learning in individual wet grassland landscapes, and (3) formulation of priorities for conservation, management, and restoration.

Reassessing the impact of health expenditure on income growth in the face of the global sanitary crisis: the case of developing countries.

In response to the COVID-19 pandemic, developing countries are increasing health spending to save lives. Such a response raises questions about the economic impact of this expenditure in terms of income growth that determines the development trajectory of these countries. This paper is the first to apply dynamic linear and threshold panel data models to capture the dynamic impact of health expenditure on growth on a large sample of developing countries, while addressing endogeneity bias and taking into account different levels of human and physical capital, as well as a set of health expenditure indicators. The main results show that while public and private domestic health expenditure increase income growth, external inflows of health expenditure do not. In addition, this positive impact is enhanced by a higher level of human and physical capital, thereby demonstrating complementarity rather than substitutability between investments in health, physical and human capital.

Imperfect Financial Markets and the Cyclicality of Social Spending

I develop a novel link between frictions in international financial markets and fiscal procyclicality.Complementing existing evidence, A decomposition of government expenditure into social spending and public good spending reveals that the cyclical correlation of social spending exhibits the biggest differences across countries. I build a small open economy model with income inequality, endogenous fiscal policy and sovereign default risk to rationalize this spending procyclicality. Government spending, divided into a public good and social spending, is financed by taxation and external debt. External debt is subject to endogenous risk premia because the government cannot commit to repay its debt. The government conducts a procyclical tax and social spending policy when debt is in or close to the risky zone. Social spending then only redistributes income, failing to smooth private consumption over time. Far away from the crisis zone, fiscal policy is countercyclical, only public goods spending is always procyclical. Social spending is cut most when the government faces positive risk premia, because it is better a substitute of private income than public good spending. It also accounts for the largest part in fiscal adjustment: because taxes are distortionary and cannot be targeted well. Fiscal procyclicality becomes stronger with higher economic inequality as revenue raising through taxation becomes more costly.

Household Earnings and Income Volatility in the UK, 2009–2017

We study the volatility of sources of individual and household level income in the UK in the years 2009-2017, following the Great Recession and government austerity. We find that the volatility of (pre-tax) earnings and disposable income has fallen for the working-age in this period, largely due to fewer negative and large earnings shocks. For older individuals, we also find a fall in the volatility of private income, mainly due to fewer positive and large income shocks. Taxes and transfers help stabilise incomes, with social security cash benefits and income-dependent refundable tax credits reducing household private income volatility by around a quarter for the working age, and 40 percent for those aged 60 or over. However, over the sample period, taxes and benefits became less well correlated with earnings, reducing their ability to counteract swings in labour income. The findings illustrate the consequences of fiscal retrenchment and the cut-backs to welfare benefits on the stability of incomes.

Participatory value evaluation for the evaluation of flood protection schemes

Participatory Value Evaluation (PVE) is a new survey method which elicits citizens' preferences over the allocation of public budgets as well as their private income. In a PVE, citizens are asked to choose the best portfolio of projects given a governmental and a private budget constraint. First, this paper aligns PVE with the traditional Kaldor-Hicks welfare economics framework underlying many Cost-Benefit Analyses. Second, this paper positions PVE against other valuation methods. Third, this paper applies the PVE method to evaluate the impacts of projects mitigating flood risks in the Netherlands. This empirical application reveals that Dutch citizens indicate a preference for projects that combine strengthening dikes and give space to the river to flood safely, particularly when such projects positively influence biodiversity and recreational opportunities.

IDENTIFYING WAYS TO INCREASE THE PRIVATE INCOME OF NORTH KHORASAN GENERAL DIRECTORATE OF EDUCATION

This study aimed to identify ways to increase the private income of North Khorasan education. The study was a combination of exploratory design projects in two qualitative and quantitative stages. Due to the quality of the study, the snowball sampling method was used and a total of 22 experts were interviewed. In the quantitative research section, statistical samples were selected from among managers and deputies of the General Administration and financial sector experts in a comprehensive manner. Data analysis and qualitative analysis in the qualitative stage was done by the Foundation's data analysis method and through open coding, central coding, and selective coding, and in a small part, Friedman's test method was used to evaluate and prioritize strategies. Based on the research findings, it was found that privatization and transfer, commercialization, internal resource management, external participation, manpower, and legal-structural measures were among the strategies to increase specific revenues. Also among the specific revenue-generating strategies for training and education were human resource strategies, internal resource management, privatization, and assignment. As a result, officials are encouraged to take effective steps to increase their revenues by properly planning to strengthen and revitalize previous resources and policy and develop new guidelines for using new resources.

Accessibility and inclusive use of public spaces within the city-centre of Ibadan, Nigeria

PurposeIssues pertaining to accessibility and inclusiveness of public spaces are not explicitly discussed in developing nations. Thus, this study aims to explore how ease of access and socio-economic status of residents influence the use of city-centre public spaces in Ibadan, Nigeria.Design/methodology/approachA survey involving users (N = 427) of three different types of public spaces (shopping mall, park and recreational centre) was undertaken. Statistical analysis including Kruskal Wallis H-test and ordered logistic regression analysis were used in determining the differences in the public spaces attributes and predicting the determinants of use.FindingsThe analysis revealed that the use of a private car, income and gender significantly predict the frequency of use. It was observed that the determinants of public space use differ across the three categories. In particular, accessibility better predicted the use of the park than it did for the shopping mall or the recreation club.Practical implicationsIt brings to fore ways through which city planning in developing countries can address social exclusion and spatial disparity within city-centres. Specifically, new proposals need to be sensitive to the walkability potentials when sitting parks whilst holistic efforts must be directed towards group-specific needs when planning shopping malls and recreation clubs. City management strategies, policies and incentives are required to encourage the use of public transportation systems within city-centre spaces as it presents a vital platform for improving access and inclusive use.Originality/valueThe study fills the gap in the literature by extending knowledge on certain aspects of city-centre’s public spaces in a unique cultural setting. The implications of socioeconomic disparity on public space use became apparent.

Income and poverty status among women experiencing intimate partner violence: A positive social return on investment from civil legal aid services

AbstractWe examined the economic status of women who experienced intimate partner violence (IPV) and sought civil legal aid services over 1 year. Women's average overall income increased, after accounting for both private income increases and public income decreases, by approximately $5500, and the odds of being in poverty 1 year after civil legal services decreased. The social return on investment estimate for total income impact relative to legal aid costs was 141%, meaning that women's overall income increased $2.41 for every $1 expended on legal aid services. Legal aid services can improve income and reduce poverty among women experiencing IPV.

Domestic Violence against Widow Stepmothers: A Cross-Sectional Study for prevalence, Risk Factors and Psychological Effects.

The prevalence of domestic violence nowadays resembles a cancer due to its wide spread and diffusion within the societies and it has a profound effect on the well-being of the victim causing deep psychological distress. A cross- sectional study was done on three hundreds widow in urban and rural areas in Fayoum governorate of Egypt after death of their husband and in presence of another widow of the same husband. The aim of the present study is to detect the prevalence of violence, risk factors affecting that violence against widow stepmother along with the motives for such violence and psychological effects of violence on widow stepmothers. The study showed that the risk factors for that abuse of the victims depend on the education state of the abused victim, family strength of the abused, presence of a private income and independency of the victim, presence or absence of another widow, and presence or absence of siblings. The motives for that abuse were mainly due to substance related to fortune, jealousy between women, the declaration of marriage after death of the husband and sometimes due to basic needs of the victim or even unspecified or undetermined. Widow stepmothers were affected tremendously by such events in the form of depression, post-traumatic stress disorder or sleep disturbance . Governments , civil community organizations, families and religion men should face such a problem , raise awareness of people regarding the problem and try to find a solution for. Further research should be done to detect the real cause and predisposing factors for domestic violence against widow stepmothers and if the cause of violence was due to their past history of their violence against husband siblings.

The Fay–Herriot model for multiply imputed data with an application to regional wealth estimation in Germany

The increasing inequality of private income and wealth requires the redistribution of financial resources. Thus, several financial support schemes allocate budget across countries or regions. This work shows how to estimate private wealth at low regional levels by means of a modified Fay–Herriot approach that deals with (a) unit and item non-response, especially with used multiple imputation, (b) the skewness of the wealth distribution, and (c) inconsistencies of the regional estimates with the national direct estimate. One compelling example for financial redistribution is the promoted catching-up process of East Germany after the German reunification. This work shows that 25 years after the reunification differences are more diverse than just between the East and the West by estimating private wealth at two regional levels in Germany. The analysis is based on the Household Finance and Consumption Survey (HFCS) that the European Central Bank launched for all euro area countries in 2010. Although the application in this paper focuses particularly on Germany, the approach proposed is applicable to the other countries participating in the HFCS as well as to other surveys that make use of multiple imputation.

Modeling of Access to Health Services in Turkey: The Count Data Models with a Poisson Distribution

In simple terms, access refers to people's ability to obtain and use quality health care technologies when they need. In this study, data collected by TurksStat, Turkish Statistical Institute, through Turkey Health Survey which was applied across the country was analyzed. This survey was carried out every two years, for the first time in 2008 and the last time in 2016. The aim of this study is to examine the level of access to health services in terms of some socio-demographic variables such as gender, age, education, health status and income in Turkey between the years 2008-2016. The results obtained with the analysis show that all variables differ according to years and they are statistically significant. According to the analysis conducted as part of the study, it was concluded that, in Turkey, the status of income and health insurance do not constitute a risk factor on the access to health services. It is thought that the presence of a social security system involving the whole country has an effect on this result. Considering from this point of view, in countries that do not have a strong social security system, out-of-pocket health spending and private health insurance increase the inequalities among the social segments. Therefore, private health insurances and income systems to reduce dependence on out-of-pocket health spending should be developed, and access to health services should not be an indicator of income. In this respect, more research is needed in which access to health services is evaluated from all aspects.

Administrative corruption in the static model of balancing common and private interests

  This article is dedicated to examination of corruption in the previously researched static model of balancing common and private interests (SOCHI-models). In the previously considered two-level system, between the upper non-corrupted level and the lower – agents, is introduced the average level which in exchange for a bribe, can weaken the influence of the upper level. The upper level sets the minimum amount of resources for an agent to spend on general purposes. A supervisor, in exchange for a bribe, the role of which is played by the share of agent’s private income, can reduce this lower boundary, allowing the latter to spend more resources on private purposes. This article reviews the three-level hierarchical system “Principal-Supervisor-Agents”, where the supervisor uses the administrative corruption mechanism, which requires two descriptive and optimization approaches towards its examination. The descriptive approach suggests that the considered functions of bribery are known; while the optimization approach implies the use of Germeyer’s theorem. The author explores the impact of administrative corruption upon systemic congruence of the SOCHI-model: it is proven that the administrative corruption can only reduce congruence. The author finds the conditions that can beat or reduce administrative corruption can, as well as conditions when corruption is disadvantageous for supervisor or agent. The article determines the circle of agents that supervisor can exert influence upon.  

Administrative corruption in the static model of balancing common and private interests

  This article is dedicated to examination of corruption in the previously researched static model of balancing common and private interests (SOCHI-models). In the previously considered two-level system, between the upper non-corrupted level and the lower – agents, is introduced the average level which in exchange for a bribe, can weaken the influence of the upper level. The upper level sets the minimum amount of resources for an agent to spend on general purposes. A supervisor, in exchange for a bribe, the role of which is played by the share of agent’s private income, can reduce this lower boundary, allowing the latter to spend more resources on private purposes. This article reviews the three-level hierarchical system “Principal-Supervisor-Agents”, where the supervisor uses the administrative corruption mechanism, which requires two descriptive and optimization approaches towards its examination. The descriptive approach suggests that the considered functions of bribery are known; while the optimization approach implies the use of Germeyer’s theorem. The author explores the impact of administrative corruption upon systemic congruence of the SOCHI-model: it is proven that the administrative corruption can only reduce congruence. The author finds the conditions that can beat or reduce administrative corruption can, as well as conditions when corruption is disadvantageous for supervisor or agent. The article determines the circle of agents that supervisor can exert influence upon.  

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The paper generalizes the arguments and counterarguments within the scientific discussion on the migration impact on the countries� economic convergence. European integration in the long run provide for the convergence of the Ukrainian socio-economic development to the level of member states of the European Union (EU). Considering the neoclassical model of growth of Solow-Swan, the convergence of the national economy to the EU could be bosting by intensifying international processes. In particular, the international migration of labor resources allows increasing the amount of private income from abroad, which makes it possible to improve the socio-economic quality of migrant families and achieve the welfare of the EU society. Based on the theoretical analysis of the scientific literature, the authors highlighted the diversified nature of the migration impact on economic growth and economic convergence. The paper aims to determine the migration impact on the Ukrainian and EU economic convergence. The paper�s object is Ukraine and EU member states, which have the common features of long-term development in the economic and political dimensions. The time for analysis is 2000-2020. The methodological basis of the investigation is the concept of s � and b � convergence. The endogenous parameter of the econometric model of b � convergence is the GDP per capita, and exogenous parameters: the volume of private remittances to countries from abroad, the volume of net migration.

Contrasting the recommendations of participatory value evaluation and cost-benefit analysis in the context of urban mobility investments

Participatory Value Evaluation (PVE) is a new method to assess the desirability of government projects. In a PVE, individuals select their preferred portfolio of government projects given a constrained public budget. Individuals’ preferences for (the impacts of) government projects can be determined based on these choices. The obtained preferences can be used to rank government projects in terms of their desirability. Cost-Benefit Analysis (CBA) is an alternative appraisal method used to assess the desirability of government projects. CBA establishes the desirability of public projects through analyzing people’s trade-offs between their private income and impacts of public projects. The primary objective of this paper is to investigate whether CBA and PVE lead to different policy recommendations in the context of urban mobility investments. We conducted CBAs and a PVE for 16 urban mobility investment projects and find indicative evidence that projects which focus on improving traffic safety and improvements for cyclists/pedestrians rank higher in the PVE, whereas car projects rank higher in the CBA analysis.

Imported Food Price Shocks and Socio-Political Instability

Using a panel of 101 low- and middle-income countries with data covering the period 1980-2012, this paper applies various econometric approaches that deal with endogeneity issues to assess the impact of food price shocks on socio-political instability once fiscal policy and remittances have been accounted for. It focuses on import prices to reflect the vulnerability of importer countries / net-buyer households to food price shocks. The paper finds that import food price shocks strongly increase the likelihood of socio-political instability. This effect is greater in countries with lower levels of private credit and income per capita. On the other hand, while remittances seem to dampen the adverse effect of import food price shocks on socio-political instability in almost all countries, the mitigating role of fiscal policy is significant only in countries with low-levels of private credit.

A construção arbitrária do preço do produto imobiliário e a natureza da renda na condominialização da cidade de São Paulo

A região da Luz, centro de São Paulo, constitui caso significativo de disputa pela produção do espaço: renovações urbanas e parcerias público-privada (Estado, agentes construtores e financeiros). O preço da construção (valorização e capitalização) estrutura a urbanização e se realiza como um conjunto de pressuposições que pretendem identificar a região da Luz a outras mais valorizadas da cidade. O produto imobiliário decorrente é aquele que responde a uma determinada “vocação”. Movimento da natureza da renda cuja capitalização se manifesta como aumento do preço, deslocando-se da valorização decorrente da exploração imediata da força de trabalho. Resulta uma marcha que estende relações de produção de condomínios fechados para a cidade, conflitos do privado ao público. Uma “condominialização”, que tende à generalização da propriedade privada e da renda. Uma luta de classes socioespacial.

Why is welfare provision unpopular in China?

ABSTRACT This article analyses from a cultural perspective why, despite exacerbating income inequality, Chinese people are not in favour of income equality. I argue that the patriotic education campaign initiated in the 1990s encouraged citizens to sacrifice for the greater good of China and caused the Chinese to accept and adapt to a decrease in governmental welfare as well as lessening the demand for it, thus reducing the government’s financial burden of welfare provision. I then test the hypothesis against the Asian Barometer Survey data. The statistical results support my assertion, suggesting that strong patriotic beliefs reduce the preference for social equality, and that private income and economic perspectives do not significantly stimulate the public demand for redistributive policies in China.

Tourism specialization, economic growth, human development and transition economies: The case of Poland

Abstract This study examines the relationship between tourism specialization economic growth, and human development in a transition economy. It proffers a conceptual link between tourism specialization and human development through a division of labor framework. Dynamic comparative advantage, Sen's capability approach, and the translog production function characterize the conceptual relationship. The Limited Information Maximum Likelihood (LIML) estimates this relationship's nature in the case of Poland. Tourism specialization has a short-term effect on economic growth and a negative and indirect link to human development. Economic growth seems the channel that supports human development expansion, indicating short- and long-term significant, positive effects. Human capital reveals a U- shape pattern in its relationship with economic growth and human development. The study's implications are two testable propositions and two policy options suggesting tourism specialization's potential impact on private and public incomes, which are relevant developmental channels in transition economies.