Role Of Income Distribution Research Articles

ANALISA INFAQ SEBAGAI RULE MODEL TRANSAKSI PEMBAYARAN PADA PENERAPAN SISTEM PERDAGANGAN EKONOMI BERBASIS SYARIAH.


 
 
 
 Infaq is one of the pillars of Islamic economics that plays an important role in income distribution and social welfare. Infaq can be implemented as a rule model for payment transactions in the implementation of a sharia-based economic trading system. This study aims to analyze infaq as a rule model for payment transactions in the implementation of a sharia-based economic trading system.
 The research method used is a qualitative method with a descriptive approach. Data were obtained through literature studies and interviews with experts in the field of Islamic economics. The results of the study show that infaq can be implemented as a rule model for payment transactions in the implementation of a sharia-based economic trading system. Infaq can be applied as a condition or obligation for transaction actors to set aside a portion of their income for social purposes. Infaq can be implemented through a digital payment system that is integrated with infaq management institutions.
 
 
 

Varieties of capitalism and growth regimes: the role of income distribution

Abstract This article proposes a comparative political economy framework for analyzing the links between varieties of capitalism (VoC) and growth models, with a focus on the role of income distribution in the international trade imbalances leading up to the global financial crisis of 2008. For a panel of 18 countries over the period 1981–2007, we find that strongly rising top income shares contributed to debt-led growth and current account deficits in major liberal market economies (LMEs), whereas pronounced falls in the wage share contributed to export-led growth and current account surpluses in coordinated market economies (CMEs). We discuss how, against a global trend of liberalization and de-unionization, the institutional features originally thought to establish prosperous (and stable) VoC were linked to the emergence of distinct but similarly inequitable (and unstable) growth models in LMEs and CMEs.

The Impact of Tax and Expenditures Policies on Income Distribution: Evidence from Pakistan

Tax and social expenditure policies have a crucial role in income distribution. This study explores the potential role of taxation and social expenditure policies in income redistribution in South Asia. For this purpose, empirical analysis is conducted by Fixed Effect (FE) and Instrumental Variable (IV) FE models. The analysis suggests that both taxation and social expenditures policies effectively reduce income inequality in South Asia. These findings indicate that social spending and taxation can be used as a policy tool to redistribute income in developing countries. The results also indicate that higher social spending, increased direct taxes, and more reliance on foreign debts can ameliorate the income distribution. Based on the results, it can be suggested that for this region, with the low level of taxes, direct taxes, a large informal economy, and other weak features of tax administration, more reliance on direct taxes and social expenditure policies should be the primary tool for income redistribution.JEL Classification: H2, H5, I3How to Cite:Khan, S., & Padda, I. U. H. (2021). The Impact of Tax and Social Expenditure Policies on Income Distribution: Evidence from South Asia. Etikonomi, 20(2), xx – xx. https://doi.org/10.15408/etk.v20i2.18121.

Environmental pollution, environmental regulation, and labor income share.

China has maintained great economic growth in the past and reached the status of a middle-income country. Meanwhile, the relationships among environmental pollution, environmental regulation, and economic growth have attracted wide attention. In addition, some studies have shown that economic growth is not balanced in the division of income between labor and capital, and this has become one of the most important issues in China. The conflict over the environment and income distribution is supposed to cause social welfare loss; therefore, we want to examine the impact of environmental pollution and environmental governance on labor income share. Our empirical results show that the relationship between environmental pollution and share of labor income is positive at the present stage. However, the relationship is not linear but rather an inverted-U shape in the long run. In addition, we tested the effects of environmental regulation on labor income share and found an inverted-U-shaped relationship. Although growing concern about environmental pollution adds to the pressure on the government, our statistical results suggest that there is no perfect way to resolve environmental problems. Additionally, labor unions are expected to play a different role in income distribution.

Role of income distribution and consumption expenditure in agricultural output: case of Nigeria

PurposeThis study quantifies empirically the induced impact of income distribution and consumption expenditure on the structures of agriculture production of Nigerian economy.Design/methodology/approachThe study calibrates an extended input-output model on a social accounting matrix (SAM) for Nigeria for the year 2010. Moreover, the study conducts a dispersion analysis to identify the key agriculture sectors/subsectors both in exogenous and endogenous setup.FindingsThis study presents an empirical analysis of propagation in the structure of production particularly in the structure of agriculture sector. It combines the aggregate and the disaggregated levels of analysis and identifies the key sectors/subsectors both in the exogenous and endogenous setup. The comparison of both findings confirms that the composition of income distribution and consumption expenditure significantly influences the composition and the aggregated and disaggregated order of structure of agriculture production.Originality/valueKnowledge of interindustry connections is vital in policy implications since the policy makers prefer strongly interconnected sectors to the sectors with poor industry linkages. These connections are estimated as forward and backward linkages, which provide indices to set the criteria for key sectors identification. This study presents an empirical analysis of propagation in the structure of production particularly in the structure of agriculture sector. It combines the aggregate and the disaggregated levels of analysis and identifies the key sectors/subsectors both in the exogenous and endogenous setup.

Keeping Up with the Novaks? Income Distribution as a Determinant of Household Debt in CESEE

This paper constitutes an initial attempt to shed light on role of income distribution in household debt and financial market access in Central, Eastern and Southeastern Europe (CESEE). Using household-level data from OeNB’s Euro Survey for period 2009-2018, we address question whether interpersonal comparisons (“keeping up with CESEE Joneses i.e. the Novaks”) affect probability of having and planning a loan. Applying multilevel probit modeling to take into account hierarchical structure of data, our results support notion that higher income inequality is negatively correlated with probability of having a loan at bottom of distribution, and positively at top. We show this impact for almost all components of household debt, but evidence is strongest for mortgage, car and foreign currency loans. Interpersonal comparisons turn out to drive loan intentions, however, mainly on very top of income distribution.

The inoperability extended multisectoral model and the Role of Income Distribution: A U.K. Case Study

In this paper, an effort is made to enrich the current input–output (I–O) methodologies employed for studying disruptive events, by extending the I–O framework and including all the phases of the circular flow of income into the overall disaster impact. In this respect, the Inoperability Extended Multisectoral Model is created and implemented in order to estimate the higher‐order effects in terms of value added and disposable income. The social accounting matrix, referred to the United Kingdom, is constructed and proposed as a starting point for assessing the effects of a system perturbation related to the eruption of the Volcano Eyjafjallajökull, in mid‐April 2010, which affected air transport services due to the full closure of the U.K.'s airspace for several days. Finally, the ranking of those commodities and institutional sectors which are badly affected can provide guidance to policymakers in order to minimize the overall impact on the economy.

PARADIGMATIC PERSPECTIVES ON INCOME DISTRIBUTION AND FINANCIAL CRISES

The role of the income distribution and inequality among individuals and factors of production on the occurrence of financial crises has long been a controversial issue in economics literature and the stance of the economists on this debate is mainly rooted in their different views on the distributional mechanism in the economic system. By conducting an extensive literature review, this paper attempts to illustrate the views of the different schools of economic though on role of income distribution and inequality as a cause of the financial crises with a special focus on the subprime crisis in 2008.

Mainstream and Heterodox Sources of Endogenous Growth: Some Linkages and the Role of Income Distribution

Mainstream and Heterodox Sources of Endogenous Growth: Some Linkages and the Role of Income Distribution

The Role of Income Distribution in the Diffusion of Corporate Social Responsibility

AbstractThe purpose of this paper is to investigate the link between corporate social responsibility (CSR) growth and income distribution. We present a general equilibrium model where social responsibility enters both firms' and consumers' decisions. At equilibrium, different degrees of CSR diffusion may arise. We study the conditions under which there exists a virtuous circle which ties increases in the diffusion of CSR to reductions in income inequality. Under certain circumstances, any policy which promotes CSR diffusion induces a reduction in income inequality. By contrast, when such conditions are not satisfied, only redistributive policies may generate the virtuous circle.

Does Entrepreneurship Bring an Equal Society and Alleviate Poverty? Evidence from Thailand

Abstract The Global Entrepreneurship Monitor (GEM) Report 2007 records that Thailand has a remarkably high entrepreneurial activity, even if compared to Japan or the United States. Many studies, including Schumpeter (1934) [1] emphasised the role of entrepreneurship in economic growth and development of a country. Entrepreneurs, characterised by their attitudes to be imaginative, innovative, authoritative, and risk-taking, drive innovation and technological change in the economy, which are crucial in economic growth and development and lead to higher income of the population. On the other hand, entrepreneurship has been considered to associate with higher inequality because the risk embodied in it. Although, during 1990 to 2002 poverty reduction in Thailand has been claimed to be success but income inequality became higher. This raise the question that does entrepreneurship have any impact on reduction of poverty and inequality in Thailand? Therefore, the aim of this paper is to study the impact of entrepreneurship in income inequality and poverty of Thailand. Towards this ends, the analysis on the impact of entrepreneurship on income of the poor, income inequality and poverty are carried out by performing regression analysis. This study uses data that are disaggregated into 76 provinces in Thailand, obtained from official government documents. The regression models follows Beck et al (2005) [2], by running regression based on cross sectional data. Results suggest that entrepreneurship, measured as the number of new business establishment, has a significant negative effect on growth of Gini-coefficient and the headcount index but there is no significant effect on income of the poor. In addition, to confirm these relationships, we expand the data by using 76 provinces of Thailand from 1995 to 2008, and are estimated by three different methods – pooled OLS, random effects and fixed effects. Based on the first two methods, we found that entrepreneurship does not have a significant impact on income of the poor, income inequality and number of poverty. However, the result of the Hausman test necessitates a re-estimation of the model by the fixed effects method. Using the fixed effects methods, our results indicate that entrepreneurship is insignificant. We take this result as evidence that entrepreneurship plays little or no role in income distribution and poverty of Thailand.

The Political Economy of the Standard Level of Services: The Role of Income Distribution

The theory of fiscal federalism points out that decentralisation should be pursued in order to fit differences in individual preferences. However, the presence of externalities and the need of providing merit goods to citizens suggest that centralisation is likely to produce more efficient results. Moreover, in a political economy framework, each decision - including the possibility to fix a standard level of services - mainly depends on the objective function of the policymakers. Adopting this approach, the aim of this paper is to compare the individual convenience of a common standard level defined under a centralised system versus different provisions of public services when decisions are decentralised. Income heterogeneity across individuals is assumed. JEL-Code: H700, H730, D310, D780.

China's Fiscal Expenditure on Social Security Since 1978

Since the implementation of the reform and opening-up policy, the Chinese government has been continually increasing the fiscal expenditure on social security. This effort has scored remarkable achievements and has been playing an important role in basic needs, safeguarding social stability and promoting economic development. However, great disparity still exists between fiscal investment in social security and the population's social security demand, due largely to inadequate total fiscal expenditure and its biased structure. Government spending on social security has yet to play an equalising role in income distribution. In view of these problems, this article recommends ways to strengthen and improve fiscal expenditure on social security.

Income distribution and the diffusion of networks: An empirical study of Brazilian telecommunications

Telecommunications is often considered to be an important contributor to economic growth, and most countries have therefore adopted several initiatives to improve coverage of fixed as well as mobile telephones. This paper focuses on the role of income distribution on the diffusion of fixed telecommunications in Brazil. The focus is on how the distribution of income may affect affordability and thereby the market size. The result is that an uneven income distribution may result in higher coverage for the poorest municipalities in the study since the uneven distribution allows for at least some consumers to reach the critical level of income. For municipalities above a certain average income level, the effect is reversed and coverage will be adversely affected by high inequality. The findings are robust to different measures of inequality.

The income–pollution relationship and the role of income distribution: An analysis of Swedish household data

The main purpose of this study is to analyze the relationship between pollution and income at household level. The study is motivated by the recent literature emphasizing the importance of income distribution for the aggregate relation between pollution and income. The main findings from previous studies are that if the individual pollution–income relationship is non-linear, then aggregate pollution for, say, a whole country, will depend not only on average income, but also on how income is distributed. To achieve our objective we formulate a model for determining the choice of consumption of goods in different types of household. Furthermore we link the demand model to emission functions for various goods. The theoretical analysis shows that without imposing very restrictive assumptions on preferences and the emission functions, it is not possible to determine a priori the slope or the curvature of the pollution–income relation. The empirical analysis shows that, given the model used, the pollution–income relation has a positive slope in Sweden and is strictly concave for all three pollutants under study (CO 2, SO 2, NO x ), at least in the neighbourhood of the observed income for an average household. We also show that altering the prevailing income distribution, holding average income constant, will affect aggregate emissions in the sense that an equalization of incomes will give rise to an increase in emissions. One implication is then that the development of aggregate pollution due to growth depends not only on the income level, but also on how growth is distributed.

05/01450 Long-run gasoline demand for passenger cars:The role of income distribution: Storchmann, K. et al. Energy Economics, 2005, 27, (1), 25–58

05/01450 Long-run gasoline demand for passenger cars:The role of income distribution: Storchmann, K. et al. Energy Economics, 2005, 27, (1), 25–58

On the Post Keynesian Theory of Growth and 'Institutional' Distribution

The neo-Pasinetti model proposed by Nicholas Kaldor in 1966 represents a significant theoretical departure from the canonical Post Keynesian approach to growth and distribution. The most incisive objection to this model, originally raised by Paul Davidson, questions Kaldor's 'valuation theorem', which assigns to the rate of interest the role of equilibrating the goods market. An alternative model is proposed here that reconciles the equilibrating role of income distribution with the traditional Post Keynesian approach to distribution. Two extensions of this model are discussed. The first supposes that financial capitalists and workers have different propensities to save out of dividends and capital gains. The second allows for international capital movements in the context of a two-country economy. It is shown that the equilibrium rate of profits and the long-run pattern of income distribution depend on firms' and households' portfolio and saving decisions, on the degree of financial market imperfection and on the corporate system of ownership and control in which shareholders happen to operate. A rationale for shareholders' indifference between consumption out of dividends and capital gains is also provided.

Technology Transfer, Income Distribution and the Process of Economic Development

This paper studies the role of income distribution and technology transfer in the process of economic development. A novel aspect of the model is that the composition of human capital as well as the level affect economic growth. Utilizing an overlapping-generations model in which income distribution changes endogenously, we present an economic explanation for why some countries could not start modern economic growth; why some countries took off but have apparently stopped growing after some time; and why some countries have successfully developed and continue to grow.

Distribution, Aggregate Demand and Unemployment in OECD Countries

The primary aim of this paper is to investigate the role of income distribution in the determination of unemployment. To this end, the author develops a post-Keynesian model that shows that unemployment is effectively determined by income distribution, aggregate demand, and the inadequacy of capital equipment. The deriv ed unemployment equation is applied to ten large industrial countries o ver the period 1976-89. The empirical findings provide strong support fo r the hypothesis that shifts in income distribution and inadequacy of capital equipment are major sources of unemployment. Copyright 1993 by Royal Economic Society.

Income distribution, the structure of consumer expenditure and development policy

This paper examines how and why the effects of inequality on the structure of consumption must be taken into account in development policy. It shows that, by utilising the concept of the ‘representative’ consumer, the role of income distribution as a determinant of the structure of consumption can be modelled in a theoretically consistent and empirically constructive way. The importance and methods of introducing consumer preferences and needs into the model are also analysed. Then using a simple Greek input‐output model several hypotheses about income redistribution are empirically investigated. The results indicate that egalitarian redistributions induce favourable employment and balance of payments effects, especially when the planner takes into account other sources of variation in consumer demand arising from differences in preferences across households. Rises in inequality are likely to cause comparatively more serious opposite effects and therefore must be avoided.