scholarly journals Equality in Income and Sustainability in Economic Growth: Agent-Based Simulations on OECD Data.

2019 ◽  
Vol 11 (20) ◽  
pp. 5803 ◽  
Author(s):  
Sakaki
Keyword(s):  
Economic Growth ◽  
Income Distribution ◽  
Gini Coefficient ◽  
The Other ◽  
Agent Based ◽  
The Gini Coefficient ◽  
Marginal Propensity To Consume ◽  
Marginal Propensity ◽  
Stable Growth

In countries that have developed under the current market economy, inequalities in income distribution tend to increase with three different trends, i.e., high (United States, United Kingdom, Japan), low (North Europe countries), and medium Gini coefficient levels. On the other hand, the relationship between income distribution and social welfare is generally a difficult problem to solve in economics. So, this paper discusses the impact of income distribution on the macroeconomy, limiting the scope to consistency with long-term economic growth. We attempt to answer these economic policy issues by simulation using an agent-based model based on replicator dynamics. As a result of the simulation in this paper, in general, in countries with the high marginal propensity to consume, long-term growth can be maintained by inducing equality in income distribution. On the other hand, a mature country with a low marginal propensity to consume can sustain not so high but stable growth despite increasing inequality in income distribution. According to simulation results based on OECD (Organisation for Economic Co-operation and Development) data, in the former UK, US, and Japan, the lower the Gini coefficient is, the higher the growth potential is, while in the latter Norway and Luxembourg, relatively stable growth is maintained even if the Gini coefficient increases.

Education expenditures and income distribution: an empirical analysis on European countries

Humanomics ◽  
2016 ◽  
Vol 32 (3) ◽  
pp. 248-257
Author(s):  
Ferdi Celikay ◽  
Mehmet Sengur
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Gini Coefficient ◽  
European Countries ◽  
Education Expenditure ◽  
Content Type ◽  
The Gini Coefficient ◽  
Education Expenditures ◽  
Short And Long Term

Purpose This study aims to examine the relationship between public sector education expenditure and the GINI coefficient as a measure of injustice in income distribution. Design/methodology/approach Data from 31 European countries gathered from 2004 to 2011 were analyzed using panel error correction models. Findings According to the study’s findings, a relationship between education expenditures and the GINI coefficient exists. There is a 1 per cent increase for the European countries examined in this study in their rate of education expenditure in gross domestic product (GDP), which raises the GINI coefficient by 0.20 per cent in the short-term and decreases it by 0.22 per cent in the long-term, as expected. Thus, an increase in the proportion of education expenditures in GDP affects the GINI coefficient in a statistically significant, negative way over the long-term. Originality/value This study fills a gap in the literature by determining whether the interaction between education expenditure and GINI coefficient changes in the short- and long-term. The results show that education expenditure generates positive results particularly by lowering income inequality in the long-term. This interaction can be more clearly observed in developing countries. So this conclusion adds an important empirical evidence to the literature and it may contribute in forming policies toward reducing income inequality.

The Problem of Income Inequality

2019 ◽  
pp. 42-44
Author(s):  
Andrew Smithers
Keyword(s):  
Income Inequality ◽  
Gini Coefficient ◽  
Living Standards ◽  
Living Standard ◽  
The Gini Coefficient ◽  
The Us ◽  
The Uk ◽  
Distribution Of Income

Living standards change in line with GDP per head only if the distribution of incomes is unchanged. If incomes become less equally distributed the living standards of most people will fall even if GDP per head is stable. The Gini Coefficient is the most widely used indicator designed to measure the distribution of income. UK inequality, on this measure, has risen since 1977, stabilized since 1987, and fallen in recent years. In the US there has been a long-term increase in income inequality. Unless this US trend for increased income inequality halts, it is quite likely that even if GDP per head rises in the US, the living standard of the average voter will fall. The recent data suggest that changes in income inequality pose less of a threat to living standards in the UK then they do to those in the US.

Economic Growth, Income Distribution, and Social Exclusion in Turkey

2021 ◽  
pp. 268-299
Author(s):  
Anıl Duman ◽  
Alper Duman
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Income Distribution ◽  
Social Exclusion ◽  
Social Inclusion ◽  
The Past ◽  
Political Cycles ◽  
Institutional Convergence ◽  
Distribution Of Income

This chapter examines the degree of income and institutional convergence between Turkey and European Union (EU) as well as trends in inequality and poverty by taking a long-term perspective as changes in polices an institutions impact on economic and social outcomes, often with considerable lags. The authors’ findings reveal that Turkey has successfully transformed its inward-looking and largely agricultural economy in the past 35 years into an export-oriented and urban-based economy. The transformation has been achieved mostly in periods of dramatic reform embedded in business and political cycles. Nevertheless, in the most recent era, there have been significant setbacks for certain groups in terms of regulatory environment, equality of opportunity, and access to markets and resources. Although there has been progress in the overall distribution of income and other aspects of social inclusion, convergence to EU standards is not easy to observe in these indicators.

scholarly journals Intersecting Lorenz curves and aversion to inverse downside inequality

2020 ◽  
Author(s):  
W. Henry Chiu
Keyword(s):  
Gini Coefficient ◽  
Linear Inequality ◽  
The Other ◽  
Inequality Aversion ◽  
Inequality Index ◽  
Lorenz Curves ◽  
Income Distributions ◽  
The Gini Coefficient ◽  
Precise Condition

Abstract This paper defines and characterizes the concept of an increase in inverse downside inequality and show that, when the Lorenz curves of two income distributions intersect, how the change from one distribution to the other is judged by an inequality index exhibiting inverse downside inequality aversion often depends on the relative strengths of its aversion to inverse downside inequality and inequality aversion. For the class of linear inequality indices, of which the Gini coefficient is a member, a measure characterizing the strength of an index’s aversion to inverse downside inequality against its own inequality aversion is shown to determine the ranking by the index of two distributions whose Lorenz curves cross once. The precise condition under which the same result generalizes to the case of multiple-crossing Lorenz curves is also identified.

Aggregate Demand, Vertical Specialization and Growth Accounting

2016 ◽  
Vol 07 (03) ◽  
pp. 1650016
Author(s):  
Hubert Escaith
Keyword(s):  
Income Elasticity ◽  
Developing Economies ◽  
Supply And Demand ◽  
Aggregate Demand ◽  
International Perspective ◽  
Growth Accounting ◽  
Marginal Propensity To Consume ◽  
Marginal Propensity ◽  
Global Economic Governance

Global manufacturing and international supply chains have changed the way trade and economic growth are understood today. Recent statistical advances suggest new ways of looking at growth accounting when global value chains (GVCs) — articulating supply and demand chains from an international perspective — are taken into consideration. The method is applied to the G-20 countries, a group of leading developed and developing economies that took a prominent role in fostering and managing global economic governance. The demand dynamics is first analyzed through a growth-accounting decomposition, then through the long term determinants of income elasticity of imports and the household marginal propensity to consume imported products.

Diamonds or development? A structural assessment of Botswana's forty years of success

2008 ◽  
Vol 46 (2) ◽  
pp. 191-214 ◽  
Author(s):  
Ellen Hillbom
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
Structural Analysis ◽  
Income Distribution ◽  
Political Institutions ◽  
Success Story ◽  
Modern Economic Growth ◽  
Democratic System ◽  
Modern Economic

ABSTRACTDue to its four decades of high long-term economic growth and democratic system, Botswana has been depicted as an exceptional success story in a region full of economic and political failures. In this article, a structural analysis is applied, and it is argued that Botswana's success should be understood as one of pre-modern growth without development. It is claimed that although the country may be a growth miracle, it has not yet experienced ‘modern economic growth’, characterised by structural change in patterns of production as well as in social and political institutions. Such analysis also offers an explanation for the duality of Botswana's economy and society, since pre-modern growth, as opposed to development, allows for significant poverty rates and extremely unequal resource and income distribution to prevail in the midst of plenty.

scholarly journals Direction of Causality between Financial Development and Economic Growth in Turkey

2021 ◽  
pp. 22-37
Author(s):  
Cengiz Yılmaz ◽  
Banu Demirhan
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Gross Domestic Product ◽  
Financial Development ◽  
The Other ◽  
Development Indicators ◽  
Short Run ◽  
Causality Relationship ◽  
Using Data

This paper has investigated the causality relationship between financial development and economic growth in Turkey, using data from 2005:04 to 2020:03. We construct a time-series model to explore causality relationships between the variables. In the study, two indicators were used as financial development indicators: banking loans to the private sector and money supply to GDP (Gross Domestic Product). The empirical results have represented a bi-directional relationship between financial development and economic growth in the short run. On the other hand, we have not found a causality relationship in the long term.

scholarly journals Measurement and Analysis of Total Local Production Effect on Investment Spending in Iraq from 1990-2018

2021 ◽  
Vol 3 (2) ◽  
pp. 68-74
Author(s):  
Hussam Aldeen Taha ◽  
Hasan Zidan Khalaf
Keyword(s):  
Economic Growth ◽  
Extended Period ◽  
Local Production ◽  
Economic Activities ◽  
Equilibrium Relationship ◽  
Measurement And Analysis ◽  
Marginal Propensity ◽  
Investment Spending ◽  
The Relationship

Investment is one of the important economic activities that occupies fundamental place in the priorities of economic studies because the size of investment determines the volume of production and income and then the rate of economic growth and contributes to pushing the wheel of economic growth, so this research tries to measure the function of investment spending in the Iraqi economy during the extended period From 1990-2018, using the ARDL model, the results of this study showed that there is a long-term equilibrium relationship between income and investment spending and that investment spending depends largely on income, meaning that the relationship between investment spending and income is positive, and the marginal propensity to invest is 0.13.

scholarly journals Wealth inequalities in cities of the Polish-Lithuanian Commonwealth and their changes during the seventeenth century. Sources and methods of measure

2020 ◽  
pp. 131-144
Author(s):  
Katarzyna Wagner
Keyword(s):  
Economic Growth ◽  
Seventeenth Century ◽  
Gini Coefficient ◽  
Western Europe ◽  
Economic Situation ◽  
Wealth Concentration ◽  
The Gini Coefficient ◽  
Wealth Inequalities ◽  
The Town

I would like to determine the evolution of wealth concentration in main cities of the Polish-Lithuanian Commonwealth by comparing the data from different benchmark years. Moreover, I will analyze whether the Gini coefficient value indeed refers to the communities who are at a threshold of economic growth, and what is the correlation between the value of the coefficient and the town or city’s economic situation. Also, it is worthwhile to ponder the question: is there any correlation – noted by both Jan Luiten van Zanden and Guido Alfani – whereby the larger the town/city, the more visible the inequalities. Finally, how do the towns/cities of the Polish-Lithuanian Commonwealth compare to those in Western Europe.

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