Regional Income Distribution Research Articles

The effects of fuel subsidies on regional income distribution through smuggling

AbstractFuel subsidies, intended to improve consumer affordability, can result in economic distortions through altered relative prices and negative environmental impacts. Furthermore, these subsidies can lead to unintended consequences, such as fuel smuggling, especially to neighboring countries where significant price differences exist. While previous research has extensively explored the economic dimensions of fuel subsidies, the potential interplay between fuel smuggling and its impact on regional income distribution remains understudied. This study investigates the effects of fuel smuggling, stemming from Iran's long history of significant fuel subsidies, on income distribution across all 30 provinces of the country. We employ a model to specify the demand for fuel smuggling, using fuel prices in neighboring countries and the distance to the nearest border as sources of identification. Subsequently, we estimate the monthly smuggling profit across regions and assess this profit's influence on regional income distribution. Our empirical analysis draws on monthly data on gasoline and diesel sales from 160 fuel distribution districts in Iran, spanning the period from 2005 to 2014. Our findings demonstrate specific cases of smuggling activities that account for an average of 25% of total fuel consumption and generate substantial income in economically disadvantaged border provinces. We discuss the socioeconomic implications of fuel subsidies, with a focus on smuggling activities.

Effect of Tax Structure on Income Inequality in Sri Lanka

Growing income inequality is seen as one of the most important global concerns in this decade. Hence, the Sustainable Development Goals (SDGs) 2030 aims at reducing income inequality within and among countries. IMF emphasizes that income inequality emerged as one of the critical concerns for economic policy in both developed and developing countries. However, as shown by the UN, Sri Lanka is far lower than the South Asian regional income distribution standards owing to its high inequality. At the same time, tax revenue has become one of the major concerns in the country due to its broadened internal deficit. In this background, this study examines the short-run and long-run effects of tax structure on income inequality in Sri Lanka utilizing annual statistics from 1980 to 2019 by employing the ARDL model. Findings revealed that in the long run, value-added and excise taxes have a significant association with income inequality in Sri Lanka. However, the association between personal income tax and income inequality was positive but insignificant. In contrast, corporate income tax and import duty have a statistically significant negative association with income inequality in Sri Lanka. Further, in the short run, at the overall level taxes are not significantly associated with income inequality except the personal income tax which has a significant negative association with income inequality.

Regional development disparity and mapping of economic potential in East Nusa Tenggara province

<p>East Nusa Tenggara Province is one of the provinces in Indonesia in the form of an archipelago and geographically borders directly with the State of Timor Leste. This province has a problem with a fairly high poverty rate, in fact it was recorded as the 3rd highest in Indonesia after the provinces of Papua and West Papua. Because it is an archipelagic province, the problems of disparity in regional development, income inequality and poverty cannot be avoided. The existence of this disparity symptom does not only lie in regional development, but this disparity occurs in the income and GDP-forming sectors. Therefore the main goal to be achieved in this research is to identify areas in NTT Province which are still classified as lagging behind, and how to find the economic base sector as a leading sector so that it can be used as a locomotive for regional development so that in turn it is able to reduce regional inequality, income distribution and poverty. The analytical tools used are Theil Entrophy Analysis, Klasen Typology, Location Quintient (LQ) Analysis and Dynamic Location Quintien (DLQ) Analysis. The data needed is secondary data in the form of published documents from the BPS Province of NTT from 2012-2018 for the purposes of analysis such as GRDP data, population and per capita income for each district in the province of NTT. The results of the analysis found that there were 3 regencies that were classified as developed and fast growing, 3 regencies which were categorized as developed but depressed areas.</p>

Analisis Kinerja Keuangan Kabupaten/Kota Pemekaran di Sumatera Utara

This study aims to analyze the influence of the implementation of local government autonomy on the fiscal performance of newly formed municipalities in northern Sumatra. The emphasis is on regional revenue growth after fiscal decentralization and government control over the regional economy have been implemented. According to the study findings, local economic development is positively influenced by local autonomy. However, the profit sharing is still relatively small compared to the regional budget. Several of North Sumatra's agricultural provinces, known as regencies, are not yet ready to enforce the regional autonomy laws. The majority of poor towns and cities depend heavily on the allocation funds from the General Funds and Special Distribution Funds, respectively.
 Keywords: regional economic decentralization, regional income distribution.

Localising the Upper Tail: How Top Income Corrections Affect Measures of Regional Inequality

Abstract Poor coverage of top incomes in surveys, also referred to as the “missing rich” problem, leads to severe underestimation of income inequality. At the regional level this shortcoming is even more eminent due to small regional sample sizes. Tax records contain more accurate income information at the top and cover all regions equally well. Top-income correction approaches tackle the missing rich problem by imputing top incomes from tax to survey data. While existing methods focus on adjustments at the national level, our paper provides corrections of the regional income distributions in survey data by exploiting the tax data’s regional variability. We impute top incomes in the survey data from the German Microcensus based on region-specific Pareto and generalized Pareto distributions estimated from tax records. The combined survey and tax data provide new estimates of regional income inequality in Germany. Our findings indicate that inequality between and within the regions is much larger than previously understood with the magnitude of the adjustment depending on the federal states’ level of inequality in the tail.

ANALISIS PENGARUH TINGKAT PDRB PERKAPITA, INDEKS PEMBANGUNAN MANUSIA, DAN PENANAMAN MODAL ASING TERHADAP KETIMPANGAN PENDAPATAN DI INDONESIA PERIODE TAHUN 2019-2021

Income inequality is one aspect of poverty that needs attention because it is essentially a measure of relative poverty, namely calculating poverty as part of the regional income distribution. Good economic development can be seen from the level of gross regional domestic product per capita (PDRBPKP), Human Development Index (IPM) and Foreign Investment (PMA) in various regions in Indonesia. Changes in each of these variables are influenced by income inequality in various regions. regions, especially in Indonesia. The purpose of this study is to analyze the Gini ratio (income inequality) and the factors that influence it in Indonesia for the 2019-2021 period. This research is a quantitative research. The variables used in this study are Gini ratio, GRDP per capita, Human Development Index, and Foreign Investment. The panel data method is used as an analysis in the form of cross section data from 34 provinces in Indonesia and time series data for 2019-2021. The results of this study indicate that PDRBPKP has a negative effect on income inequality, HDI has a positive effect on income inequality, and FDI has a negative effect on income inequality in Indonesia for the 2019-2021 period.

Faktor – faktor yang mempengaruhi indeks pembangunan manusia di Provinsi Papua Tahun 2015-2019

This research makes use of secondary facts with panel data evaluation, consisting of time series records for 2015-2019 and go section facts for 27 towns/districts in Papua Province. The secondary statistics taken encompass the Human improvement Index (HDI), Gross regional domestic Product (GRDP), income distribution, and poverty levels. The consequences of this have a look at indicate that there's a positive have an impact on among profits distribution at the Human development Index (HDI), poverty level which has a significant poor impact at the Human improvement Index (HDI), and profits distribution which has a high quality impact on the Human development Index (IPM) in Papua Province. 2015-2019 years.

Convergence effect of the Belt and Road Initiative on income disparity: evidence from China

The international economic effects of the Belt and Road Initiative (BRI) have received much attention, but few studies have focused on the impact of the BRI on domestic regional income disparities. Here, a theoretical framework is proposed based on the logic of public policy analysis in economic geography aiming at studying the impact of the BRI on the convergence of inter-city income disparities in China. Specifically, taking the BRI as a quasi-natural experiment, the impact of the BRI on the convergence of inter-city income disparities in 26 provinces of China is studied empirically using the difference-in-differences method. We find that the BRI has indeed contributed to the convergence of regional income disparities, and this convergence effect is continuously dynamic in its nature. The effects of trade opening and industrial structure transformation are the paths through which the BRI contributes to the convergence of income disparities. Furthermore, we find that there is significant heterogeneity in the effects of the BRI on the convergence of income disparities among cities in different provinces in China. The convergence effect of the BRI on the income disparities among cities in East China is small and insignificant, whereas it can significantly reduce the income disparities among cities in Central and West China. The research in this article has important application value for exploration of the regional income distribution effect of the BRI.

STRATEGI PEMBERDAYAAN UMKM JATIM DALAM MENGHADAPI MASA PANDEMI

Following the COVID-19 pandemic, Micro, Small, and Medium Enterprises (MSMEs) play a critical role in supporting national economic growth. The MSME sector has been particularly hard hit by the COVID-19 pandemic, which has disrupted supply and demand as well as supply chains, causing the economy's wheels to grind to a halt at the MSME level. MSMEs must be supported by the government and other stakeholders in order to grow and develop. The goal of empowering MSMEs is to achieve a balanced, developing, and equitable national economic structure, as well as to boost regional development, job creation, income distribution, economic growth, and poverty alleviation. The East Java Provincial Government has developed a policy as a strategy for empowering MSMEs in East Java, so that MSMEs are not disrupted in their development process during the pandemic.Keywords : strategy, MSME empowerment, pandemic

Econophysics and the Entropic Foundations of Economics.

This paper examines relations between econophysics and the law of entropy as foundations of economic phenomena. Ontological entropy, where actual thermodynamic processes are involved in the flow of energy from the Sun through the biosphere and economy, is distinguished from metaphorical entropy, where similar mathematics used for modeling entropy is employed to model economic phenomena. Areas considered include general equilibrium theory, growth theory, business cycles, ecological economics, urban–regional economics, income and wealth distribution, and financial market dynamics. The power-law distributions studied by econophysicists can reflect anti-entropic forces is emphasized to show how entropic and anti-entropic forces can interact to drive economic dynamics, such as in the interaction between business cycles, financial markets, and income distributions.

Trading with richer and poorer countries: trade integration and regional inequality in Greece

This paper examines the link between increased trade and regional GDP growth across the regional income distribution in Greece during the post-EMU period (2000–2013). By means of quantile regression techniques, panel fixed effects and system generalized method of moments (GMM), we disentangle the effects of EU trade—trading with generally richer countries—versus global trade—in the case of Greece, mostly trading with poorer countries—at several points of the regional income distribution to identify differences in trade elasticities. The analysis finds that the impact of EU trade is highly heterogeneous and mainly affects negatively the economy of the richer regions in Greece. In contrast, the effects of EU trade display insignificant results for the lower-income regions, attributed to the absence of direct substitution effects.

Disentangling the distributive impact of fiscal policy

This paper measures the distributive impact of fiscal policy on personal and regional income distribution and provides a decomposition of the redistributive effect of fiscal policy for individual income units and when they belong to groups. This methodology is useful to identify how much of redistributive effect and also progressive/regressive effects apply within groups, between groups and among overlapping units, and whether there are tensions between different effects. The execution of fiscal policy in Argentina for year 2010 is the case of study. Fiscal policy reduces income inequality under both personal and regional definitions. The vertical effect is strong and weakly compensated by reranking. The vertical effect is a net result of progressive expenditures and regressive taxes. The selection of groups displays particular results. The findings are relevant for the design of fiscal policy in federal countries that pursue both efficiency and equity goals. In the case of Argentina (and this certainly can be extended to other federal countries), this may include rebalancing expenditures among different kinds or levels of governments, as well as the re-designing the tax system and eliminating tradeoffs observed from the current context.

Pareto Efficient Central Redistribution with Decentralized Redistribution

In an economy with both inter- and intra-region inequality and inconsistency between the objectives of local and central governments, this paper studies optimal non-linear federal (central) income tax under non-linear regional income taxes. Starting with a benchmark model without labor mobility, it uses the variation approach to derive a statistic-based optimal federal income tax formula, which turns out to be a function of social welfare weights, regional income distributions and labor income elasticities. Unlike the traditional Mirrleesian tax, the optimal federal income tax depends on the inter-government gap of preference instead of the central government's own preference. In particular, the optimal tax rate is non-negative (non-positive) when the central government has a relatively higher (lower) preference for equality. While in an economy without labor mobility the federal income tax is limited to remedy the inconsistency of objectives, introducing labor mobility activates federal income tax's role as a Pigovian tax which internalizes the horizontal revenue externality. The numerical analysis suggests that even if the decentralized redistribution is undesirable compared to the fully centralized redistribution, it is generally desirable when combined with the central redistribution.

Regional Income Distributions in France, 1960–2018

Regional Income Distributions in France, 1960–2018

China’s WTO accession and income inequality in European regions: External pressure and internal adjustments

Exports from China have surged substantially since its accession to the World Trade Organization in 2001. We investigate how this expansion affected income inequality within European regions by separating the trade pressure experienced in external and domestic markets, as well as exploring the importance of several economic mechanisms. Despite some intermediate adjustments, softening the influence of Chinese pressure and even facilitating European exports, we establish a significant increase of inequality that is concentrated mostly in the lower part of regional income distributions. We determine a significant channeling of the trade pressure to income inequality through the shrinking manufacturing sector, the increasing unemployment rate, and the technological upgrade of manufacturing exports, together with an increasing demand for better-qualified labor.

A threefold empirical analysis of the relationship between regional income inequality and water equity using Tapio decoupling model, WPAT equation, and the local dissimilarity index: evidence from Bulgaria.

This study utilizes a threefold empirical analysis in order to examine the relationship between income and water equity in Bulgaria, the fastest shrinking country in the world in terms of population, and the most unequal member of the EU in terms of regional income distribution. First, in line with this goal, the income elasticity of regional water demand in the country is calculated using the Tapio decoupling model. Second, the WPAT equation which measures the weighted impacts of population, per capita income and intensity on water demand, is utilized. And finally, using the local dissimilarity index, spatial differences in access to water by region are measured. Underscoring the essence of regional level analyses based on specific decomposed sub-groups, findings are thus compatible with the economic and demographic characteristics of the regions handled in the study. In the northern regions where income and population levels are relatively low, during periods when income and water demand both increase, the rise in water demand is usually higher than the increase in income; conversely, when income decreases, the water demand also falls. The effect of population dominates the changes in water demand in the northern regions, with the exception of the Northwestern Region, where water intensity is the leading factor, possibly because the Balkans' largest nuclear power plant is located in the region. In the southern regions where income is higher, income has been the most important determinant of water demand, particularly in recent years.

A Visual Analytics System for Space–Time Dynamics of Regional Income Distributions Utilizing Animated Flow Maps and Rank‐based Markov Chains

Regional income convergence and divergence has been an active field of research for more than 20 years, and research papers in this field are still being produced at a prodigious rate. Despite their importance for the study of dynamics of income distribution, interactive visualization tools revealing spatiotemporal dimensions of the income data have been sparsely developed. This study introduces a visual analytics system for the space–time analysis of income dynamics. We use state‐level US income data from 1929 to 2009 to demonstrate the visual analytics system and its utility for exploring similar data. The system consists of two modules, visualization and analytics. The visualization module, a Web‐based front‐end called Rank‐Path Visualizer (RPV), draws inspiration from the cartographic technique of flow mapping, originally developed by Tobler and embodied in his canonical Flow Mapper application.

How Does a Policymaker Rank Regional Income Distributions across Years? A Study on the Evolution of Greek Regional per Capita Income

This study examines the evolution of the regional per capita income from the perspective of a policymaker at the national level. To do that, it utilizes stochastic dominance analysis by including a utility function that expresses the “regional inequalities aversion” level of the policymaker. In this way, the analysis indicates how the policymakers rank income distributions according to their primary policy objectives and more specifically, GDP growth and diminishing of income inequalities. Data refer to the per capita GDPs of the Greek prefectures during the period 2000–2017, in real terms. The estimation of certainty equivalents provides a numeric index of preference among regional income distributions according to the policy objectives mix. Results indicate that the period 2000–2017 is characterized by different patterns of regional income evolutions. Overall, there is no regional convergence from year 2000 to 2017, while the evolution of regional income does not follow a constant path. The analysis provides thoughtful insights into the way that different policy targets and preferences can affect the relevant ranking of income distributions. In a certain level of policymakers’ “regional inequalities aversion”, a balance between economic growth and diminishing of regional inequalities targets is assumed. Apart from a useful tool in economic research, this quantification approach can also be utilized in policy design for setting more appropriate policy targets, based on the preferences of policymakers at the national level.

Household debt and income inequality: Evidence from Italian survey data

Does regional income inequality affect a household’s likelihood of being indebted? This question is addressed by using survey data on Italian households. The analysis shows that inequality in the regional income distribution has a negative effect on the probability of being indebted. However, this effect is asymmetric across income groups: greater inequality increases (decreases) the share of indebted households that are at the top (bottom) of the income ladder. The study suggests that supply factors are more important than demand ones in explaining these results.

Projections of Regional Macroeconomic Conditions using the Univariate Forecasting Method

The prediction of future macroeconomic conditions is needed by the government to carry out the planning and budgeting. This study predicts macro indicators in Hulu Sungai Utara Regency in the period 2017-2022. The method used is univariateforecasting, which includes the ARIMA model, exponential smoothing, and exponential smoothing with trend adjustment. The macroeconomic indicators used in this study are real Gross Domestic Regional Product (GDRP), economic growth, unemployment rate, and income distribution. The results of the analysis show that Brown's forecasting model is predicted that the real GDRP value tends to increase, forecasting results using a simple model on economic growth and the ARIMA (0.0,0) model on the unemployment rate, had predicted tends to be constant. And, the prediction of income distribution with the Holt model tends to increase.
 Keywords: macroeconomic, univariate, forecasting, ARIMA, exponential smoothing
 JEL Classification: E0, O1, C0