scholarly journals Lattice–Gas–Automaton Modeling of Income Distribution

Entropy ◽  
2020 ◽  
Vol 22 (7) ◽  
pp. 778
Author(s):  
Lijie Cui ◽  
Chuandong Lin
Keyword(s):  
Income Distribution ◽  
Economic Model ◽  
Income Tax ◽  
Lattice Gas ◽  
Free Market ◽  
Matthew Effect ◽  
The Other ◽  
Discrete Models ◽  
The Matthew Effect ◽  
Economic Transaction

A simple and effective lattice–gas–automaton (LGA) economic model is proposed for the income distribution. It consists of four stages: random propagation, economic transaction, income tax, and charity. Two types of discrete models are introduced: two-dimensional four-neighbor model (D2N4) and D2N8. For the former, an agent either remains motionless or travels to one of its four neighboring empty sites randomly. For the latter, the agent may travel to one of its nearest four sites or the four diagonal sites. Afterwards, an economic transaction takes place randomly when two agents are located in the nearest (plus the diagonal) neighboring sites for the D2N4 (D2N8). During the exchange, the Matthew effect could be taken into account in the way that the rich own a higher probability of earning money than the poor. Moreover, two kinds of income tax models are incorporated. One is the detailed taxable income brackets and rates, and the other is a simplified tax model based on a fitting power function. Meanwhile, charity is considered with the assumption that a richer agent donates a part of his income to charity with a certain probability. Finally, the LGA economic model is validated by using two kinds of benchmarks. One is the income distributions of individual agents and two-earner families in a free market. The other is the shares of total income in the USA and UK, respectively. Besides, impacts of the Matthew effect, income tax and charity upon the redistribution of income are investigated. It is confirmed that the model has the potential to offer valuable references for formulating financial laws and regulations.

Fellowship Behavior in Division 17 and the MOMM Cartel

1991 ◽  
Vol 19 (2) ◽  
pp. 253-259 ◽  
Author(s):  
John J. Horan ◽  
Chris D. Erickson
Keyword(s):  
Sociology Of Science ◽  
Matthew Effect ◽  
Academic Programs ◽  
The Other ◽  
Professional Service ◽  
Science Literature ◽  
Scholarly Productivity ◽  
Governing Body ◽  
The Matthew Effect ◽  
Counseling Psychologists

Graduates and employees of four institutions-the MOMM Cartel-dominate every science and practice organ of Division 17's governing body. Counseling psychologists from the other 60 academic programs (the OUTSIDERs) face numerous barriers to professional ascendancy. Six of 13 fellow nominees during the 1988-1989 year were MOMM members; none were rejected. Three OUTSIDERs were elected; four were rejected. Mean scholarly productivity for each group was 13, 21.3, and 19.7 Psyc LIT citations, respectively. The accepted OUTSIDERs were significantly more productive than the MOMMs; two of the four rejected OUTSIDERs ranked numbers one and two in scholarly productivity among all nominees. No relationship appeared between scholarship and fellow decisions; MOMM membership strongly predicted election to fellow status. Personal familiarity with the evaluators, rather than professional service, apparently accounts for these filings -a variant of the "Matthew Effect" discussed in the sociology-of-science literature Recommendations for reform are offered

THE IMPACT OF TAXATION ON INCOME DISTRIBUTION: EVIDENCE FROM INDONESIA

2013 ◽  
Vol 58 (04) ◽  
pp. 1350024 ◽  
Author(s):  
KUNTA NUGRAHA ◽  
PHIL LEWIS
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Household Income ◽  
Income Tax ◽  
The Other ◽  
Data Sources ◽  
Input Output ◽  
Middle Income ◽  
The Impact ◽  
Major Data

The Indonesian economy has grown significantly since 2000, but income inequality has increased since 2001. One of the possible government tools to improve income inequality is through taxation. This paper evaluates household income, income tax, taxes on production, and their impact on income distribution. The major data sources are the National Socioeconomic Survey and the Input–Output Table. The key finding is that income tax only slightly improves income distribution, but taxes on production worsen income distribution. The other important finding is that both forms of taxation are regressive, especially for lower and middle income household. The results suggest that Indonesian taxation worsens income inequality.

scholarly journals Exponential or Pareto: towards an evolution of equal opportunity

2021 ◽  
Author(s):  
Yong Tao
Keyword(s):  
Income Distribution ◽  
Exponential Distribution ◽  
Equal Opportunity ◽  
Pareto Distribution ◽  
Market Competition ◽  
Generalized Pareto Distribution ◽  
Underlying Mechanism ◽  
Matthew Effect ◽  
Ancient Egypt ◽  
The Matthew Effect

Abstract Pareto distribution and exponential distribution are related by the generalized Pareto distribution, which has been proposed to describe the income structure of the total population. The underlying mechanism for driving the Pareto distribution has been known as the Matthew effect of income accumulation. Today, the Pareto distribution has been observed universally in the richest class (1%~3% of populations); however, this distribution could dominate a larger proportion of populations when the investigation dated back to Renaissance Europe, Hungarian medieval society, and ancient Egypt. By contrast, the underlying mechanism for driving exponential income distribution is due to the equal opportunity of market competition, which radically differs from the Matthew effect. Here, we empirically find that, during the last 40 years, the income structures of different market-economy countries uniformly exhibit a two-class pattern, in which the great majority of populations obeys an exponential distribution and only the remaining (richest) part follows a Pareto distribution. In particular, we empirically show how the income structure in China evolved to an exponential distribution after the market-oriented economic reformation. The finding of a larger proportion of populations evolving to an exponential income distribution may reveal a potential trend of human civilization towards equal opportunity.

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.

scholarly journals Education and Energy Intensity: Simple Economic Modelling and Preliminary Empirical Results

2018 ◽  
Vol 10 (8) ◽  
pp. 2625 ◽  
Author(s):  
Tiago Sequeira ◽  
Marcelo Santos
Keyword(s):  
Gross Domestic Product ◽  
Economic Model ◽  
Energy Use ◽  
Energy Intensity ◽  
The Other ◽  
Economic Modelling ◽  
Empirical Application ◽  
Primary Schooling ◽  
Simple Economic

The ratio of energy use to Gross Domestic Product (defined as energy intensity) is a major determinant of environmental hazard and an indicator of eco-efficiency. This paper explains why education can have an effect in reducing the energy intensity thus affecting eco-efficiency. We devise a stylized economic model with simple and widely accepted assumptions that highlights the role of education in decreasing energy intensity worldwide. In an empirical application that is robust to the features of the data, we show that primary schooling contributes to a decrease in energy intensity which has a very significant effect, even accounting for the other well-known determinants of energy intensity. Additionally, when schooling is taken into account, income is no longer a negative determinant of energy intensity.

Systems of Evaluation and the Matthew Effect

2017 ◽  
Vol 27 (4) ◽  
pp. 362-364 ◽  
Author(s):  
Michael Sauder
Keyword(s):  
Information Flow ◽  
Matthew Effect ◽  
High Status ◽  
The Matthew Effect ◽  
Definition Of

Existing research on the Matthew Effect establishes that this dynamic can alter information flow and the distribution of rewards in ways that lead to cumulating advantages for high status actors. We know little, however, about how systems of evaluation, and especially variations in systems of evaluations, influence the expression and strength of these outcomes. Drawing on analyses of the effects of rankings on organizations, I consider how different evaluation contexts can change both audience perceptions about which organizations are award worthy and the definition of merit on which reward distributions are based.

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