The Robin Hood Index Adjusted for Negatives and Equivalised Incomes

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.

Interest rates will continue to rise in Brazil

Significance The increase, the largest since 2002, comes despite low growth expectations and reflects concerns over rising inflation, with the Central Bank warning of a similar rate rise in December. Investors are concerned by governmental proposals to breach the public spending cap to pay for a new income transfer programme, Auxilio Brasil (Brazil Relief). Impacts Rising prices will fuel popular dissatisfaction with the government. Higher interest rates will affect both growth and debt prospects. The need to finance pre-election social assistance programmes will put investor sentiment at risk

Future of Profit Splits

In a highly integrated world where new technologies are disrupting the market, taxation and transfer pricing have gained a lot of attention because governments are seeking new ways to increase revenue collection. Although the application of the arm’s length standard is sometimes unpredictable, and its geographical approach may lead to stateless income, transfer pricing has proven to be an effective tool to protect a country’s tax base. Tax authorities and international organizations have tried to revise the transfer pricing framework through the BEPS project. However, until the new framework is settled, there is a need for an updated rational interpretation of the current methodologies to provide realistic options to allocate profits in a modern setting where multinational groups are centrally managed and intangibles are highly integrated. This Article provides such an interpretation and demonstratesits implementation with a realistic example.

AUXÍLIO EMERGENCIAL - IMPACTOS NA RENDA E NO ICMS

The literature has shown that public policy programs based on social protection for the most needy, provide a reduction in income inequalities, as long as these policies bring neutrality to fiscal policy, that is, they do not increase the public deficit. The instruments of social protection, especially those of direct income transfer to the most needy, may result in an increase in consumption by the poorest classes, and consequently an improvement in tax revenue, especially in the collection of ICMS, consumption tax . So, we intend to show here that emergency aid, which is a temporary income transfer program implemented by the Federal Government to mitigate the impact of the economic crisis resulting from the COVID-19 pandemic, had direct implications for the economy; especially in improving the income of the most needy and a return, in part of the benefit, to the revenues of the States, in the form of taxation. Said Emergency Aid minimized the drop in collection, or even maintained the collection levels of ICMS, the most important tax of the States, which contributed to the revenue of these federated entities. As a result of the fiscal problems caused, Emergency Aid heated the economy and boosted consumption in order to keep the state ICMS tax collection at even higher levels, in many states, compared to the pre-pandemic period. The objective is to outline an empirical strategy to measure the impact that the emergency aid had on the collection of ICMS, that is, to measure the sensitivity of the variation of the ICMS of the States due to the injection of resources of this transfer program.

Pengaruh Kinerja Keuangan Pemerintah Daerah Terhadap Pertumbuhan Ekonomi (Studi Pada Daerah Pemekaran di Pulau Sumatera)

Expansion of regions is aimed to prosper the community. In 2018 as many as 314 proposals for expansions could not be approved by the Minister of Home Affairs because the impact was not in line with expectations. This study aims to see the direct effect of the financial performance of the newly formed government regions on economic growth. Expansion area are divided into two forms, namely the old expansion area and the new expansion area. The financial performance of the local government is measured using the ratio of decentralization rates, regional dependency ratios, and the effectiveness of LGR (Locally-Generated Revenue) ratios. Population in this study is all the expansion areas of districts/cities on the island of Sumatera. Time-series secondary data year 2013-2017 covering regional original income, total regional income, transfer income, regional original income budget, and realization of Gross Regional Domestic Product (GRDP) were used. Using SPSS tool, the results shows that the ratio of the degree of decentralization has a negative effect on economic growth. Furthermore, regional dependency ratios do not affect economic growth. The LGR effectiveness ratio has a positive effect on economic growth.

Community Money COMMON. The Alternative to Universal Basic Income

The paper outlines the institutional innovation of ›Community Money‹ COMMON, a securitized claim on a monthly income transfer that can also be used as a tax allowance in an up to 100 percent inheritance tax. It can be accumulated on a special citizens’ account and is a substitute for all other kinds of public income transfers such as pensions and unemployment benefits. COMMON can also be voluntarily earned in community work. COMMON liberates citizens from the compulsory participation in the capitalist market economy.

Foreign vs domestic remittances and household welfare: evidence from Mexico

Purpose This paper aims to analyse the differential impact of foreign and domestic remittances on household expenditure shares. Design/methodology/approach This study uses micro-data from a very large and detailed income-expenditure survey in Mexico and runs consumption-share Engel equations to estimate income (expenditure) elasticities for different consumption goods groups. Trying to account for the standard problems of endogeneity, this paper considers only nuclear households with migrant fathers and compare households that receive remittances from abroad, from within Mexico and those not receiving remittances. Findings This study finds that international remittances have a larger impact on the expenditure shares of women’s clothes, insurances and durable goods, while domestic remittances have a larger impact on the share of income dedicated to food, health and education. Originality/value Based on the results, differences in consumption shares between families receiving foreign and domestic remittances might depend not only on the relative size of the income transfer but also on the nature of the transfer and the sender’s capacity to monitor in person the use of those remittances. The results indicate that households that receive remittances from abroad present higher shares of consumption of some goods the literature commonly associates with the mothers’ preferences.