Distribution of Disposable Income; Economic Growth

2017 ◽  
pp. 577-598
Keyword(s):  
Economic Growth ◽  
Disposable Income

scholarly journals THE RICH AND THE POOR IN A SIMPLE MODEL OF GROWTH AND DISTRIBUTION

2016 ◽  
Vol 20 (7) ◽  
pp. 1934-1952 ◽  
Author(s):  
Kirill Borissov
Keyword(s):  
Economic Growth ◽  
Steady State ◽  
Simple Model ◽  
Disposable Income ◽  
State Equilibrium ◽  
Positional Concerns ◽  
The Poor ◽  
The Rich ◽  
Intertemporal Equilibrium ◽  
Unique Steady State

We consider a model of economic growth with altruistic agents who care about their consumption and the disposable income of their offspring. The agents' consumption and the offspring's disposable income are subject to positional concerns. We show that, if the measure of consumption-related positional concerns is sufficiently low and/or the measure of offspring-related positional concerns is sufficiently high, then there is a unique steady-state equilibrium, which is characterized by perfect income and wealth equality, and all intertemporal equilibira converge to it. Otherwise, in steady-state equilibria, the population splits into two classes, the rich and the poor; under this scenario, in any intertemporal equilibrium, all capital is eventually owned by the households that were the wealthiest from the outset and all other households become poor.

scholarly journals EVALUATION OF THE CORRELATION BETWEEN THE LIVING STANDARDS LEVEL, SOCIO-ECONOMIC AND DEMOGRAPHIC PROCESSES IN UKRAINE

2021 ◽  
Vol 2 (37) ◽  
pp. 482-492
Author(s):  
S. Burlan ◽  
N. Katkova ◽  
S. Marushchak
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Population Growth ◽  
Demographic Change ◽  
Well Being ◽  
Living Standards ◽  
Disposable Income ◽  
Social Progress ◽  
Domestic Product ◽  
Demographic Indicators

Abstract. The aim of the study is to quantify the correlation between economic growth, social progress, demographic change, and living standards. To establish the correlation between social and economic processes the indicators were selected, using correlation-regression analysis the correlation between them was determined. The dynamics and connections tightness of 72 social and economic and demographic indicators based on official statistics for 17 years were analyzed in aggregate. As a result of the study revealed a close ligament between population’s lifetime, population growth and economic development and well-being, in particular, between gross domestic product per capita and total fertility rate, average population age, quintile ratio of funds that differentiate the degree of differentiation of funds people. The tight correlation between the average age of population, the «monetary» well-being indicators of population (the average amount of the assigned pension, the average monthly wage, the disposable income per person) and consumption (the volume of industrial production, retail turnover) were also determined. It has been found that the change in disposable income per person is closely related to a number of demographic indicators, such as population, natural population growth (reduction), and average age of population. The study also found that the growth of gross domestic product does not depend directly on the population and the number of people employed in the economy. It is determined that there is a medium correlation between indicators of crimes detected and the number of higher education institutions and the number of students in these institutions. There is also a lack of correlation between unemployment and crime rates with socio-economic indicators, although they should be. Keywords: correlation, correlation coefficient, indicators, living standard, social progress, economic growth, demographic change, evaluation. JEL Classification O11, O15, P36 Formulas: 0; fig.: 1; tabl.: 4; bibl.: 16.

scholarly journals Wage Dynamics and Economic Growth: Russian Realities

2021 ◽  
pp. 68-77
Author(s):  
Evgeny F. Vinokurov
Keyword(s):  
Economic Growth ◽  
Labor Productivity ◽  
Russian Federation ◽  
Disposable Income ◽  
First Year ◽  
Gdp Growth ◽  
Regression Equations ◽  
Average Salary ◽  
Multiplicative Effect ◽  
The Russian Federation

The article deals with the relationship between the economic growth of Russia and the dynamics of average wages. A joint analysis of wages, GDP, salary output and labor productivity in the Russian Federation for the period 2000–2019 was carried out. The type and parameters of the regression equations connecting these indicators are determined. The analysis allows us to conclude that it is advisable to increase real wages, despite the accompanying slow growth of labor productivity and a decrease in salary. The main argument in favor of this statement is the multiplicative effect that occurs when the average salary in the economy increases. The paper shows that the increase in wages, in addition to the usually taken into account direct multiplicative effect, determined by an increase in the disposable income of the population, there is an additional induced multiplicative effect. The induced effect is explained by the increase in economic activity of the population proved on the Russian statistics with the growth of wages, which leads to an increase in the number of employees, and hence the wage fund and, accordingly, personal disposable income. Thus, by increasing wages, it is possible to improve the financial situation of the employed population, attract additional labor resources to the economy, and achieve GDP growth. The article presents calculations that allow us to estimate the contribution of the direct and induced multiplicative effect to the GDP of Russia for the period of 2000–2017. Based on these calculations, it can be argued that in the Russian Federation at the beginning of the XXI century, the gross domestic product, due to the multiplicative effect of changes in average wages in the first year after such a change, increased or decreased in some years by 6–7%. Although the induced multiplicative effect, as it turned out, is relatively small, there is no reason to neglect it. At the current very low rate of GDP growth, one has to take into account every tenth of a percent of such growth, and calculations have shown that the induced effect calculated for the first year after the change in wages in the period under review reached 0,6% of GDP. The calculations also showed that due to the increase in labor activity associated with an increase in the average salary, the number of people employed in the “white” labor market in Russia in some years increased by about 1%.

scholarly journals Zadłużenie gospodarstw domowych a dynamika wydatków konsumpcyjnych w krajach OECD po wybuchu kryzysu finansowego

2017 ◽  
pp. 145-158
Author(s):  
Piotr Bolibok
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
Interest Rates ◽  
Global Financial Crisis ◽  
Disposable Income ◽  
Household Debt ◽  
Rate Of Growth ◽  
The Global Financial Crisis ◽  
The Impact

The paper aims at empirical evaluation of the impact of household debt on the dynamics of consumption spending since the beginning of the global financial crisis. The research employed linear regression analysis of the rate of growth of household spending against the rate of growth of disposable income, the level of indebtedness and long-term interest rates in the OECD member states between 2008-2014. The results obtained indicate that household indebtedness was one of the factors influencing the dynamics of consumption demand and thus the processes of economic growth in the OECD states after the beginning of the global financial crisis. Variations in the relation of total debt to net disposable income and in the level of long-term interest rates were both negatively related to the changes in consumption spending. This impact turned out to be markedly stronger when total household debt of a given country was exceeding 85% of GDP, which is consistent with the results of previous investigations on the in&uence of the indebtedness of household sector on the dynamics of economic growth

scholarly journals Marginalization risks of remittance dependant population of the Republic of Moldova

2018 ◽  
Vol 3 ◽  
pp. 28-36
Author(s):  
Vadim Cujbă
Keyword(s):  
Economic Growth ◽  
Elderly People ◽  
Rural Areas ◽  
Rural Population ◽  
Disposable Income ◽  
Republic Of Moldova ◽  
Household Budget Survey ◽  
Household Budget ◽  
The Republic

This article emphasizes the importance of remittances on Moldovan income and economic growth. As a result of the increase in the flow of migrants, remittances have become an important factor in the country‘s GDP (in 2017, 20.6% of GDP). According to the Household Budget Survey the income from remittances directly affects the welfare of Moldovan households. In this study, the dependency of marginalized categories of the population (families with many children, elderly people and rural population) on the remittances of Moldovan migrants is analyzed. In rural areas, remittances account for more than 20% of the average disposable income.

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