scholarly journals PARETO'S LAW FOR INCOME OF INDIVIDUALS AND DEBT OF BANKRUPT COMPANIES

Fractals ◽  
2000 ◽  
Vol 08 (03) ◽  
pp. 293-300 ◽  
Author(s):  
HIDEAKI AOYAMA ◽  
WATARU SOUMA ◽  
YUICHI NAGAHARA ◽  
MITSUHIRO P. OKAZAKI ◽  
HIDEKI TAKAYASU ◽  
...  
Keyword(s):  
Probability Distribution ◽  
Income Distribution ◽  
Power Law ◽  
Income Tax ◽  
Model Building ◽  
Fiscal Year ◽  
Pareto Exponent ◽  
Pareto’S Law ◽  
Distribution Of Income

We analyze the distribution of income and income tax of individuals in Japan for the fiscal year 1998. From the rank-size plots, we find that the accumulated probability distribution of both data obey a power law with a Pareto exponent very close to -2. We also present an analysis of the distribution of the debts owed by bankrupt companies from 1997 to March 2000, which is consistent with a power law behavior with a Pareto exponent equal to -1. This power law is the same as that of the income distribution of companies. Possible implications of these findings for model building are discussed.

scholarly journals THE IMPACT OF TAX POLICY ON ECONOMIC GROWTH, INCOME DISTRIBUTION, AND ALLOCATION OF TAXES

2006 ◽  
Vol 23 (2) ◽  
pp. 28-52 ◽  
Author(s):  
James D. Gwartney ◽  
Robert A. Lawson
Keyword(s):  
Economic Growth ◽  
Income Distribution ◽  
Income Tax ◽  
Tax Rates ◽  
Personal Income Tax ◽  
Income Groups ◽  
Marginal Tax Rates ◽  
Tax Changes ◽  
The Impact ◽  
Distribution Of Income

Using a sample of seventy-seven countries, this paper focuses on marginal tax rates and the income thresholds at which they apply to examine how the tax changes of the 1980s and 1990s have influenced economic growth, the distribution of income, and the share of taxes paid by various income groups. Many countries substantially reduced their highest marginal rates during the 1985-1995 period. The findings indicate that countries that reduced their highest marginal rates grew more rapidly than those that maintained high marginal rates. At the same time, the income distribution in several of the tax cutting countries became more unequal while there was little change or even a reduction in income inequality in most countries that maintained high marginal rates. Finally, the evidence suggests that there was a shift in the payment of the personal income tax away from those with low and middle incomes and toward those with the highest incomes.

On Pareto’s law and the determinants of Pareto exponents

2004 ◽  
Author(s):  
William J. Reed
Keyword(s):  
Income Distribution ◽  
Stochastic Model ◽  
Population Growth ◽  
Gibrat’S Law ◽  
Income Distributions ◽  
Basic Assumptions ◽  
Rate Analysis ◽  
Gibrat's Law ◽  
Pareto Exponent ◽  
Pareto’S Law

A stochastic model for the generation of observed income distributions is used to provide an explanation for the Pareto law of incomes. The basic assumptions of the model are that the evolution of individual incomes follows Gibrat's law and that the population or workforce is growing at a fixed (probabilistic) rate. Analysis of the model suggests that Paretian behaviour can occur in either or both tails of an income distribution. It is shown that the magnitude of the upper-tail Pareto exponent depends on the interaction between the distribution of the growth in incomes and the growth in the size of the earning population. In particular a small Pareto exponent can be expected to occur for a population exhibiting fast or highly variable growth in incomes coupled with relatively slow population growth.

scholarly journals Trend of Real Income of the Rural Poor in East Pakistan, 1949-66

1968 ◽  
Vol 8 (3) ◽  
pp. 452-488 ◽  
Author(s):  
Swadesh R. Bose
Keyword(s):  
Income Distribution ◽  
Urban Areas ◽  
Income Tax ◽  
Gross National Product ◽  
Real Income ◽  
Income Distributions ◽  
The Past ◽  
Per Capita ◽  
Tax Payers ◽  
Distribution Of Income

Pakistan's gross national product has been rising over time. While GNP per capita remained practically unchanged during the 1950's, it increased appreciably in the 1960's. The trend of per capita income does not, however, indicate whether and to what extent economic development had 'trickle down' effects to improve the lot of the relatively poorer sections of society. Studies of intertemporal changes in inequality of income distributions and in levels of income (consumption) could show what changes actually took place in their absolute and relative income positions. "Diminishing inequalities in the distribution of income" is one of the professed objectives of Pakistan's Third Five-Year Plan [21, p. 40]. This objective implies both an absolute and a relative improvement in the income level of the poorer sections of population. The two studies which are known to have been made on income distribution in Pakistan do not cover enough ground to indicate whether this was achieved in the past: the study by Mrs. Haq [10] is limited to personal income distribution in the high-income brackets (income tax payers) in urban areas for the period 1948/49 to 1960/61, and that by Bergan [1], although comprehensive, refers to a single year, 1963/64.

Optimal Taxation of Families: Mirrlees meets Becker*

2021 ◽  
Author(s):  
Musab Kurnaz
Keyword(s):  
Quantitative Analysis ◽  
Income Distribution ◽  
Income Tax ◽  
Optimal Taxation ◽  
Tax Credits ◽  
Child Rearing ◽  
Welfare Gains ◽  
Us Economy ◽  
Parental Time ◽  
The Us

Abstract This paper studies optimal taxation of families—a combination of an income tax schedule and child tax credits. Child-rearing requires both goods and parental time, which distinctly impact the design of optimal child tax credits. In the quantitative analysis, I calibrate my model to the US economy and show that the optimal child tax credits are U-shaped in income and are decreasing in family size. In particular, the optimal credits decrease in the first nine deciles of the income distribution and then increase thereafter. Implementing the optimum yields large welfare gains.

Forecasting State Income Tax Collections: A New Approach

1978 ◽  
Vol 6 (1) ◽  
pp. 67-91 ◽  
Author(s):  
David M. Reaume
Keyword(s):  
North Carolina ◽  
Income Distribution ◽  
Income Tax ◽  
The State ◽  
New Approach ◽  
State Income Tax ◽  
State Income ◽  
Complete Detail ◽  
The Law

This paper reports on an application of the microsimulation method to the estimation of income tax collections for the State of North Carolina. Detailed forecasts of Income distribution make it Possible to model the law in nearly complete detail. The model provides quarterly forecasts of collections disaggregated by withheld taxes, declarations payments, final payments, and refunds.

Income distribution and macroeconomics in Colombia

2007 ◽  
pp. 6
Author(s):  
Javier A. Birchenall
Keyword(s):  
Income Distribution ◽  
Cross Section ◽  
Economic Variables ◽  
Aggregate Shocks ◽  
Macroeconomic Variables ◽  
Inflation Rates ◽  
Negative Effect ◽  
The Cross ◽  
Education Groups ◽  
Distribution Of Income

This paper studies the relation between macroeconomic variables and the distribution of income in Colombia. We relate the dynamics of aggregate economic variables with the cross-section of disaggregate income to determine the transmission and propagation mechanisms of aggregate shocks. The most important finding is a strong negative effect of inflation rates on the distribution of income by education groups and productive sectors.

scholarly journals Relationship Between Poverty and Economic Development: A Study on the Regions of Turkey

2018 ◽  
Author(s):  
Ahmet Ay ◽  
Emine Fırat ◽  
Fatih Mangır
Keyword(s):  
Income Distribution ◽  
Theoretical Perspective ◽  
Basic Needs ◽  
Poverty Level ◽  
Development Level ◽  
Historical Processes ◽  
Its Regions ◽  
Is Development ◽  
The Relationship ◽  
Distribution Of Income

The concept of development has been evaluated by several economic scholars within different historical processes. The meaning of the concept has changed towards the direction from a single theoretical perspective into a multi-theoretical perspective. One of these perspectives is alleviation of poverty. Poverty appears when people cannot meet basic needs for their lives. Poverty level is total amount of expenditure which is necessary to meet the basic needs. Poverty level is the determinant of welfare level of a country and its regions. Poverty numbers and poverty level are criteria indicating to what extent is development achieved. Income distribution is another issue which must be handled with poverty. Fair distribution of income must be an important policy in alleviating poverty. In this context, impact of income distribution must be positive on development level. In this study, the relationship between poverty and development has been presented within the context of Turkey and its regions.

scholarly journals Income distribution in the Colombian economy from an econophysics perspective

2016 ◽  
Vol 35 (69) ◽  
pp. 691-707
Author(s):  
Hernando Quevedo Cubillos ◽  
María N. Quevedo
Keyword(s):  
Income Distribution ◽  
Economic System ◽  
Power Law ◽  
Gibbs Distribution ◽  
Economic Systems ◽  
Second Phase ◽  
Equilibrium Thermodynamic ◽  
Thermodynamic Models ◽  
Density Distributions ◽  
Pareto Distributions

Recently, in econophysics, it has been shown that it is possible to analyze economic systems as equilibrium thermodynamic models. We apply statistical thermodynamics methods to analyze income distribution in the Colombian economic system. Using the data obtained in random polls, we show that income distribution in the Colombian economic system is characterized by two specific phases. The first includes about 90% of the interviewed individuals, and is characterized by an exponential Boltzmann-Gibbs distribution. The second phase, which contains the individuals with the highest incomes, can be described by means of one or two power-law density distributions that are known as Pareto distributions.

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