The Optimum Level of Income Inequality in South Asia: An Econometric Analysis

2021 ◽  
pp. 139156142110390
Author(s):  
Fahmida Khatun ◽  
Syed Yusuf Saadat
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Gross Domestic Product ◽  
South Asia ◽  
Gini Coefficient ◽  
Econometric Analysis ◽  
Domestic Product ◽  
Optimum Level ◽  
Capita Gross Domestic Product ◽  
Per Capita

Inequality in the distribution of income can be beneficial or detrimental for economic growth depending on the level of inequality. This study advocates that when income inequality is low, increase in income inequality increases economic growth, whereas when income inequality is high, increase in income inequality decreases economic growth. The level of inequality that maximizes economic growth is defined as the optimum level of income inequality. This article attempts to determine the optimum level of income inequality for South Asia through an econometric analysis. It uses panel data from Bangladesh, India, Nepal, Pakistan and Sri Lanka, over a 34-year period to undertake a systematic investigation using panel instrumental variables techniques. The results of this study confirm that an optimum level of income inequality does exist, and occurs at a Gini coefficient value of 0.4492. Thus, this research empirically confirms that the relationship between income inequality and economic growth is non-linear. Further calculations show that for an economy that is at the optimum level of income inequality, the per capita gross domestic product can be expected to double within approximately 13 years, provided all other factors are held constant. However, a change in the Gini coefficient by 0.10 units in either direction—higher or lower—away from the optimum level, can increase the number of years for the per capita gross domestic product to double by 55 to 57 years, depending on the method of approximation. JEL: D31, D63, O15, O40

The Opportunity Cost of Conflict: Statistically Comparing Israel and Synthetic Israel

2015 ◽  
Vol 3 (3) ◽  
pp. 609-618 ◽  
Author(s):  
Yusaku Horiuchi ◽  
Asher Mayerson
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Opportunity Cost ◽  
Baseline Level ◽  
Domestic Product ◽  
Growth Trajectories ◽  
Capita Gross Domestic Product ◽  
Second Intifada ◽  
Per Capita

What would Israel’s economy have looked like without the 2000 Palestinian Intifada? This article examines this counterfactual question by statistically comparing the economic growth trajectories of Israel and a “synthetic” Israel, which is constructed by applying a method proposed by Abadie and Gardeazabal (2003) and Abadie, Diamond and Hainmueller (2010, 2014). The results of the analysis suggest that Israel’s per capita gross domestic product during the Second Intifada was reduced by an average of about $2,003 per year (in 2005 US dollars). This amounts to about 8.6 percent of the 2000 baseline level. In the case of the Second Intifada, the opportunity cost of conflict was indeed substantial and significant.

The impacts of income inequality on the gross domestic product under direct taxation: evidence from emerging market economies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmet Eren Yıldırım ◽  
Mete Dibo
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Income Inequality ◽  
Gross Domestic Product ◽  
Emerging Market ◽  
Domestic Product ◽  
Emerging Market Economies ◽  
Content Type ◽  
Market Economies ◽  
Direct Taxation

PurposeThis study analyzes the impacts of income inequality after direct taxation on the gross domestic product as a fiscal policy tool in the development process.Design/methodology/approachThe model of the study is based on Munielo-Gallo and Roca-Sagales (2013), which examined the fiscal policy, income inequality and economic growth simultaneously. The study uses two models to analyze the relationship between income inequality and gross domestic production under direct taxation by employing autoregressive distributed lag (ARDL) model for selected emerging market economies.FindingEmpirical results reveal a negative long-run relationship between variables in some countries in line with the literature, despite a positive relationship in others. Moreover, the results exhibit the negative impact of income inequality after direct taxation on the gross domestic product decreases.Originality/valueResults of the study highlight the importance of direct taxation on income inequality concerning the reflects on economic growth. It suggests that when the income distribution is fairer, it may positively affect the gross domestic product. The study provides a new perspective to the related literature by investigating the role of income inequality under direct taxation for gross domestic product.

Abstract P360: Hypertension Treatment Rates And Health Worker Density: An Analysis Of Worldwide Data

Circulation ◽  
2014 ◽  
Vol 129 (suppl_1) ◽  
Author(s):  
Rajesh Vedanthan ◽  
Mondira Ray ◽  
Valentin Fuster ◽  
Ellen Magenheim
Keyword(s):  
Gross Domestic Product ◽  
Health Worker ◽  
World Bank ◽  
Domestic Product ◽  
Hypertension Treatment ◽  
Treatment Rate ◽  
Capita Gross Domestic Product ◽  
The World ◽  
Per Capita ◽  
The Relationship

Introduction: Hypertension is the leading global risk for mortality and its prevalence is increasing in many low- and middle-income countries. Hypertension treatment rates are low worldwide, potentially in part due to insufficient human resources. However, the relationship between health worker density and hypertension treatment rates is unknown. Objective: To conduct an econometric analysis of the relationship between health worker density and hypertension treatment rates worldwide. Methods: Hypertension treatment rates were collected from published reports between 1980 and 2010. Data on health worker (physician and nurse) density were obtained from the World Health Organization (WHO). Data for potential confounding variables--per capita gross domestic product, hospital bed density, burden of infectious diseases, land area and urban population--were obtained from WHO and World Bank databases. Potential interaction by per capita gross domestic product was evaluated. Multivariable logistic-logarithmic regression analysis was performed using Stata. Results: Full data were available from 146 countries spanning all World Bank income classification categories. Health worker density was significantly associated with hypertension treatment rate in the unadjusted model (beta = 0.23; p < 0.005). In the fully adjusted model, the association remained positive but was not statistically significant (beta = 0.30; p = 0.078) (Figure). Hypertension treatment rates were more strongly related to physician than nurse density (beta = 0.21 vs 0.08; p = 0.10 vs 0.49). Conclusion: Hypertension treatment rates across the world appear to be related to health worker density, although the relationship does not achieve strict statistical significance. Our results suggest that a 10% increase in health worker density is associated with a 2-3% increase in hypertension treatment rate. Given the global burden of hypertension and other chronic diseases, WHO guidelines for health workforce staffing may need to be reconsidered.

Nations' Rated Individualism and Suicide and Homicide Rates

2003 ◽  
Vol 92 (2) ◽  
pp. 426-426 ◽  
Author(s):  
David Lester
Keyword(s):  
Gross Domestic Product ◽  
Domestic Product ◽  
Capita Gross Domestic Product ◽  
Homicide Rates ◽  
Per Capita

Individualism ratings for 27 nations were not associated with suicide or homicide rates after controls for per capita gross domestic product.

scholarly journals Economic growth on the periphery: estimates of GDP per capita of the Congress Kingdom of Poland (for years 1870–1912)

2021 ◽  
Author(s):  
Piotr Koryś ◽  
Maciej Tymiński
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Demographic Data ◽  
Gdp Per Capita ◽  
Domestic Product ◽  
Bottom Up ◽  
Per Capita ◽  
Insight Into

Abstract This paper presents the estimates of the gross domestic product (GDP) of the Congress Kingdom of Poland for the period 1870–1912. The authors used bottom-up methodology and calculated sectoral added values using historical economic, social, and demographic data. The presented results offer first ever insight into the structure of sectoral added values in the Congress Kingdom of Poland during the period of first globalization and first reliable estimates of GDP of the Congress Kingdom of Poland. All results are presented in Geary–Khamis dollars PPP1990 and are compatible with Maddison dataset.

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