scholarly journals Climate policy and wealth distribution

2021 ◽  
Author(s):  
Dao Nguyen Thang
Keyword(s):  
Climate Policy ◽  
Capital Accumulation ◽  
Wealth Distribution ◽  
Physical Capital ◽  
Wealth Inequality ◽  
Living Standard ◽  
Positive Effects ◽  
The Poor ◽  
The Rich ◽  
Poor Class

Abstract We set up a model with inter-generational bequest transfers and a climate damage on the wealth of heterogeneous households. We show that, under the imperfections of credit markets and depending on the wealth distribution across households, a balanced budget climate policy may widen the wealth inequality between the rich and the poor class. A climate policy may create positive effects on the wealth of households but these effects are asymmetric across households in terms of both magnitudes and the transmissions of the gains from climate policy within households. The poor's gains from the climate policy are mainly transmitted into improving the living standard and then to invest in human capital because of the higher marginal return to education investment. In contrary, the rich's gains from the climate policy are transmitted biasedly into physical capital accumulation and enhance their monopoly position in producing intermediate inputs. We show that, for any climate policy, there exists a corresponding threshold of aggregate physical capital. When the aggregate physical capital of the economy exceeds this threshold then the corresponding climate policy may widen the inter-generational bequest transfers among heterogeneous households, therefore, contributing enlarge the wealth gap between the rich and the poor class in the long run.

Cooperation dynamics of polycentric climate governance

2015 ◽  
Vol 25 (13) ◽  
pp. 2503-2517 ◽  
Author(s):  
Vítor V. Vasconcelos ◽  
Francisco C. Santos ◽  
Jorge M. Pacheco
Keyword(s):  
Common Good ◽  
Evolutionary Game ◽  
Wealth Inequality ◽  
Small Scale ◽  
The Poor ◽  
Viable Solution ◽  
The Rich ◽  
Global Coordination ◽  
The Impact ◽  
Climate Change Governance

Global coordination for the preservation of a common good, such as climate, is one of the most prominent challenges of modern societies. In this manuscript, we use the framework of evolutionary game theory to investigate whether a polycentric structure of multiple small-scale agreements provides a viable solution to solve global dilemmas as climate change governance. We review a stochastic model which incorporates a threshold game of collective action and the idea of risky goods, capturing essential features unveiled in recent experiments. We show how reducing uncertainty both in terms of the perception of disaster and in terms of goals induce a transition to cooperation. Taking into account wealth inequality, we explore the impact of the homophily, potentially present in the network of influence of the rich and the poor, in the different contributions of the players. Finally, we discuss the impact of polycentric sanctioning institutions, showing how such a scenario also proves to be more efficient than a single global institution.

scholarly journals The Robin Hood Index Adjusted for Negatives and Equivalised Incomes

2021 ◽  
Vol 37 (4) ◽  
pp. 1047-1058
Author(s):  
Marion van den Brakel ◽  
Reinder Lok
Keyword(s):  
Gini Coefficient ◽  
Wealth Inequality ◽  
Income Transfer ◽  
Income Share ◽  
Robin Hood ◽  
Inequality Measures ◽  
The Poor ◽  
The Gini Coefficient ◽  
The Rich ◽  
Original Index

Abstract Indisputable figures on income and wealth inequality are indispensable for politics, society and science. Although the Gini coefficient is the most common measure of inequality, the straightforward concept of the Robin Hood index (namely, the income share that has to be transferred from the rich to the poor to make everyone equally well off) makes it a more attractive measure for the general public. In a distribution with many negative values – particularly wealth distributions – the Robin Hood index can take on values larger than 1, indicating an intuitively impossible income transfer of more than 100%. This article proposes a method to normalise the Robin Hood index. In contrast to the original index, the normalised Robin Hood index always takes on values between 0 and 1 and ends up as the original index in a distribution without negatives. As inequality measures are commonly applied to equivalised income, we also introduce a method for adequately transferring equivalised incomes from the rich to the poor within the framework of the (normalised) Robin Hood index. An empirical application shows the effect of normalisation for the Robin Hood index, and compares it to the normalisation of the Gini coefficient from previous research.

scholarly journals Determination of socio-economic conditions through wealth and material possessions: A Marxist Critique of Mansfield’s Doll’s House

2019 ◽  
Keyword(s):  
Economic Conditions ◽  
Class System ◽  
The Poor ◽  
Basic Issue ◽  
The Rich ◽  
The One ◽  
The Cost ◽  
Work Done ◽  
Poor Class

The current paper talks about the unavoidable class system that we all are entrapped in. The basic issue lies in the fact that the society we live in and grow operates on the system of class consciousness. The rich/bourgeoisie class uses and abuses the low or poor class to get their work done, whereas the poor or the proletariat has no choice except to be manipulated by the rich class for the cost of labor, for they know that their survival lies in the manipulation. It has become an accepted phenomenon that the rich class/bourgeoisie exploits the poor class for their needs and desires. The rich class has become totally dependent on the proletariat and they know they cannot move without them. As the society is designed and planned on unequal footings so, on the one hand, the rich class has found a medium to exploit the labor class but at the same time the proletariat are not allowed to interact with them and furthermore there is a bleak chance of their unification as the lower/labor class itself is a stigma in the eyes of the bourgeoisie.

scholarly journals When the Poor Buy the Rich: New Evidence on Wealth Effects of Cross-Border Acquisitions

2019 ◽  
Vol 12 (2) ◽  
pp. 102
Author(s):  
Hong-Hai Ho ◽  
Thi-Hanh Vu ◽  
Ngoc-Tien Dao ◽  
Manh-Tung Ho ◽  
Quan-Hoang Vuong
Keyword(s):  
Emerging Markets ◽  
Wealth Effects ◽  
Long Term Effects ◽  
Negative Effects ◽  
Positive Effects ◽  
Cross Border ◽  
The Poor ◽  
Long Run ◽  
The Rich ◽  
Merging And Acquisition

The growing trend of merging and acquisition (M&A) investments from emerging to developed market economies over the last two decades motivates the question on the long-run effects of M&A on the wealth of emerging markets. This paper contributes to the current literature on cross-border M&A (CBMA) by focusing on the long-term effects of this event on the bidder’s stock return in emerging markets. To address the challenges of finding an accurate measure for the effects, this study applies the propensity score matching framework in tandem with difference-in-differences (DID) on a comprehensive dataset over the 1990–2010 period. The analyses show evidence of systematic detrimental impacts of cross-border M&A on shareholders’ welfare in the long run, to a certain extent, diverging from the existing literature, which mainly highlights the positive effects for certain types of M&A. The striking finding is that such strong negative effects remain persistent even when various factors previously known as capable of suppressing underperformance are considered. Our study is in line with the growing landscape of cross-border mergers and acquisitions from the “poor” to the “rich” countries.

scholarly journals THE ORIGINS OF EXTREME WEALTH INEQUALITY IN THE TALENT VERSUS LUCK MODEL

2020 ◽  
Vol 23 (02) ◽  
pp. 2050004
Author(s):  
DAMIEN CHALLET ◽  
ALESSANDRO PLUCHINO ◽  
ALESSIO EMANUELE BIONDO ◽  
ANDREA RAPISARDA
Keyword(s):  
Capital Accumulation ◽  
Computational Study ◽  
Wealth Distribution ◽  
Wealth Inequality ◽  
Apparent Contradiction ◽  
Analytical Approximations ◽  
Special Cases ◽  
Heavy Tailed ◽  
Multiplicative Processes

While wealth distribution in the world is highly skewed and heavy-tailed, human talent — as the majority of individual features — is normally distributed. In a recent computational study by Pluchino et al. [Talent vs luck: The role of randomness in success and failure, Adv. Complex Syst. 21(03–04) (2018) 1850014], it has been shown that the combined effects of both random external factors (lucky and unlucky events) and multiplicative dynamics in capital accumulation are able to clarify this apparent contradiction. We introduce here a simplified version (STvL) of the original Talent versus Luck (TvL) model, where only lucky events are present, and verify that its dynamical rules lead to the same very large wealth inequality. We also derive some analytical approximations aimed to capture the mechanism responsible for the creation of such wealth inequality from a Gaussian-distributed talent. Under these approximations, our analysis is able to reproduce quite well the results of the numerical simulations of the simplified model in special cases. On the other hand, it also shows that the complexity of the model lies in the fact that lucky events are transformed into an increase of capital with heterogeneous rates, which yields a nontrivial generalization of the role of multiplicative processes in generating wealth inequality, whose fully generic case is still not amenable to analytical computations.

HOW DO ELEMENTARY AND HIGHER EDUCATION AFFECT HUMAN CAPITAL ACCUMULATION AND INEQUALITY? A NOTE

2011 ◽  
Vol 16 (1) ◽  
pp. 151-158 ◽  
Author(s):  
Tetsuya Nakajima ◽  
Hideki Nakamura
Keyword(s):  
Higher Education ◽  
Human Capital ◽  
Elementary Education ◽  
Capital Accumulation ◽  
Education Level ◽  
Human Capital Accumulation ◽  
Demand For Education ◽  
The Poor ◽  
Long Run ◽  
The Rich

We clarify the different effects of elementary and higher education on human capital accumulation and inequality. The productivity of elementary education plays a significant role in the widening of inequality regardless of the existence of multiple steady states. When the productivity of elementary education is low, the poor cannot afford higher education in the long run because the demand for education by the rich makes the price of education too high for the poor. However, the effect of its productivity on the attainable education level is ambiguous. A rise in the productivity of higher education always increases the education level.

scholarly journals SOCIAL SECURITY MARKETING AND NATIONAL DEVELOPMENT

2020 ◽  
pp. 270-278
Author(s):  
Dr. Igwe, Sunny Rukani ◽  
Dike, Mercy Onyinyechi
Keyword(s):  
Social Security ◽  
Critical Review ◽  
National Development ◽  
Living Standard ◽  
The Poor ◽  
The World ◽  
The Rich ◽  
The Government

Bridging the gap between the trodden poor and the rich has always posed a perennial challenge and this requires the marketing of social security for all concerns by the government. Social security has been a catalyst to the economic and national development of nations of the world. This explains why the Nigerian economy has been subjected to modernization efforts as newer schemes are springing up. Through exploratory and critical review design, this paper examined social security marketing and explored how its practices would enhance national development by improving and balancing the living standard of the poor. Finally, it encourages that adequate and timely adoption of social security marketing is a driver for national development. KEYWORDS: Social security, National Development, Disability scheme, Marketing

scholarly journals Economic potential and marketing trend of bamboo in Nepal: A case study from Rautahat District

2015 ◽  
Vol 25 (1) ◽  
pp. 63-75
Author(s):  
R. K. Jha ◽  
J. N. Yadav
Keyword(s):  
Middle Class ◽  
Group Discussion ◽  
Well Being ◽  
Private Land ◽  
Cultural Conditions ◽  
The Poor ◽  
The Status ◽  
The Rich ◽  
Near Future ◽  
Poor Class

Bamboo is a versatile gift of nature. It has direct link to the socio-economic and cultural conditions of the Nepalese people. The aim of the study was to assess the status of bamboo production in private land, its contribution to socio-economic condition and marketing trend of bamboo culms and bamboo products. This study was conducted in 10 Village Development Committees (VDCs) of Rautahat District during July to October, 2010. Data were collected through household (HH) survey using semi-structured questionnaires, key-informant survey through interviews, focus group discussion, market survey, and bamboo stock measurement. Two wards in each VDC were selected purposively based on availability of bamboo. The HHs in the selected wards were categorized into three well-being classes (rich, middle and poor) through participatory approach. The average number of bamboo clumps per HH was found to be 3.4 in the three categories of HHs within the study area; 5.7 (highest) in the rich-class HHs followed by 3.9 in the middle-class HHs and 0.5 (lowest) in the poor-class HHs; there were, on an average, 80 culms per bamboo clump in the study area. On the contrary, the income from the bamboo sector was found to be just opposite- 73.85% in the poor-class HHs followed by 2.37% in the middle-class HHs and 0.85% in the rich-class HHs. The prices of bamboo culms, basket and Nanglo winnow were found to have increased by 51.6%, 41.0% and 36.4% respectively during the last 4 years- from 2006/07 to 2010. No fixed market, no fixed price and no guarantee in sealing the products were found to be the major problems for market development of the bamboo products in the district. Awareness-raising through trainings and study-tours on plantation techniques to the bamboo-growers as well as the craft-makers and production of high-prized products are essential for increasing bamboo plantations and for the development of bamboo market in the district so as to make bamboo-culm supplier in the near future. The findings of this study will help the concerned agencies to inform about the status and future prospects of bamboo sector in the district.Banko Janakari; A Journal of Forestry Information for NepalVol. 25, No. 1Page: 63-75

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