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Open Access
Article
Publication date: 15 February 2024

Davi Bhering

Brazil’s regional inequality is an important topic due to the large and persistent differences in development between states and the high levels of inequality in the country…

Abstract

Purpose

Brazil’s regional inequality is an important topic due to the large and persistent differences in development between states and the high levels of inequality in the country. These variations in development can potentially render survey data inaccurate since the significance of capital income varies across the states. Besides, previous studies incorporating tax and national accounts data globally have mainly focused on measuring the income distribution at the country-level. This approach can limit the understanding of inequality, especially when considering large countries such as Brazil.

Design/methodology/approach

The methodology used to construct these estimates follows the guidelines of the Distributional National Accounts, whose core goal is to provide income distribution measures consistent with macroeconomic aggregates and harmonized across countries and time. The procedure has three main steps: first, it corrects the survey’s underrepresentation of top incomes using tax data. Then, it accounts for national income items not included in the survey or tax data, such as imputed rents and undistributed profits. Finally, it ensures that all components match the national income.

Findings

Compared to survey-based estimations, the results reveal a new angle on the state-level inequality. This study indicates that Amazonas, Rio de Janeiro and São Paulo have a more concentrated income distribution. The top 1\% of earners in these states receives around 28\% of total pre-tax income, while the top 10\% receive nearly 60\%. On the other end, Amapá (AP), Acre (AC), Rondônia (RO) and Santa Catarina (SC) are the states where the income distribution is less concentrated. There were no significant changes in the income distribution across the states during the period analyzed.

Originality/value

This study combines survey, tax and national accounts data to construct new estimates of Brazil’s state-level income distribution from 2006 to 2019. Previous results only considered income captured in surveys, which usually misses a significant part of capital incomes. This limitation may bias comparisons as capital income has different importance across the states. The new estimates represent the income of top groups more accurately, account for the entire national income and enable to compare regional inequality levels consistently with other countries.

Details

EconomiA, vol. 25 no. 1
Type: Research Article
ISSN: 1517-7580

Keywords

Article
Publication date: 1 October 2000

Julie Froud, Colin Haslam, Sukhdev Johal and Karel Williams

Explains how and why the household should, and could, be an object of analysis for a new social accounting. It shows that the household has been neglected in national income

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Abstract

Explains how and why the household should, and could, be an object of analysis for a new social accounting. It shows that the household has been neglected in national income accounting, which generally tends to represent it as a black box. It also shows how the data from national income accounting can be reworked to demonstrate the importance of the household at macro and meso levels. The reworking shows that 84 per cent of GDP passes through the household just as, at the meso level, there are important differences between households in how they pool, spend and save income.

Details

Accounting, Auditing & Accountability Journal, vol. 13 no. 4
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 9 January 2019

Khee Giap Tan, Nguyen Trieu Duong Luu and Sangiita Yoong Wei Cher

The paper offers the first systematic and comprehensive analysis of dynamics of economic growth slowdown for India at the sub-national level covering the period 1993–2013. In…

Abstract

Purpose

The paper offers the first systematic and comprehensive analysis of dynamics of economic growth slowdown for India at the sub-national level covering the period 1993–2013. In light of India’s regional diversity and variation in terms of gross regional domestic product (GRDP) per capita, the purpose of this paper is to empirically investigate the growth dynamics at the sub-national level. The paper aims to answer two questions: first, are determinants of economic slowdown likely to differ across income groups? Second, what are the probabilities that the sub-national economies in India will experience a growth slowdown in the near future?

Design/methodology/approach

The paper undertakes a comprehensive analysis of growth slowdown for 106 Asian developing economies encompassing the national economies in ASEAN and the sub-national economies in Greater China, Indonesia and India. To be sure, the authors are not making any direct comparison to countries at different stages of economic development; rather, the comparison is between economies/sub-national economies that fall in the same income category. The authors construct income group-specific logistic model to identify the relevant determinants of growth slowdown and use Bayesian model averaging techniques as a robustness check. The authors also compute economy-specific predictive probabilities of growth slowdown over the period 2012–2017.

Findings

The empirical results show that a growth slowdown in various income groups tends to be associated with different sets of determinants, although broadly, across all income groups, the occurrence of growth slowdown is positively associated with higher GRDP per capita. The average predictive probability of growth slowdown for India’s sub-national economies is 0.43, indicating that, on average, India’s sub-national economies have a 43 per cent chance of experiencing growth slowdown in the 2012–2017 period. Overall, the prospects of the sub-national economies of India are less worrying than that of Greater Chinese economies but bleaker than the outlook for economies in ASEAN and Indonesia.

Originality/value

The research contributes to the understandings of growth dynamics, especially the issue of growth slowdown, in India. This paper differs from the existing literature on growth dynamics by being India centric and analysing the issue of growth slowdown at the sub-national level. Despite a steady increase in the level of GRDP per capita for the sub-national economies of India since 1993, significant disparities still exist across economies. Identifying determinants of growth slowdown and subsequently computing predictive probabilities serves as early warning signs for policy-makers and generates insights on how development policy can be shaped.

Details

International Journal of Social Economics, vol. 46 no. 3
Type: Research Article
ISSN: 0306-8293

Keywords

Book part
Publication date: 13 May 2019

Dibyendu Banerjee

Terrorism and anti-national activities reduce the capital stock of a country, increase levels of uncertainty, and promote counterterrorism expenditures by drawing resources from…

Abstract

Terrorism and anti-national activities reduce the capital stock of a country, increase levels of uncertainty, and promote counterterrorism expenditures by drawing resources from productive sectors. This chapter analyzes the issue of anti-national activities using a static general equilibrium framework. Anti-nationals appropriate or destroy a part of the existing capital stock. Governments hold preventive or regulatory sectors that monitor and provide security service to reduce such socially deviant activities and, thereby, to prevent misutilization of capital. Incorporating these issues, a general equilibrium model has been developed to examine the impact of a government’s stringent regulatory policies and the expansion of a country’s capital base on the volume of the anti-national sector and its consequent impact on national income as well. The study finds that, contrary to common wisdom, stringent governmental regulatory policies expand the prevalence of anti-national activities and may produce negative impact on national income. Accumulation of capital stock, however, is found to produce a positive impact on the volume of the anti-national sector and national income. Hence, the solution to this problem does not lie in stricter governmental regulation but rather in a conducive environment for capital accumulation. Such a scenario needs to be created.

Details

The Impact of Global Terrorism on Economic and Political Development
Type: Book
ISBN: 978-1-78769-919-9

Keywords

Abstract

Details

Economic Growth and Social Welfare: Operationalising Normative Social Choice Theory
Type: Book
ISBN: 978-0-44451-565-0

Article
Publication date: 1 May 2004

Sunil Kumar and Biman Prasad

The results of the 1999 and 2001 general election seem to suggest that the Indo‐Fijian community in Fiji voted on the issues of poverty, unemployment and lack of opportunities…

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Abstract

The results of the 1999 and 2001 general election seem to suggest that the Indo‐Fijian community in Fiji voted on the issues of poverty, unemployment and lack of opportunities amongst the Indo‐Fijian community. The Indo‐Fijian community, since the military coups of 1987 and more recently in May 2000, has increasingly felt marginalised by the Indigenous Fijian led governments. The expiry of land leases and the lack of opportunities for many of them in both the rural and urban areas are a source of increasing concern. Indian politicians are also raising these concerns in their struggle for political and economic rights for the community. Based on a national survey data this article examines some of these concerns. It analyses the extent of concern about poverty, unemployment and lack of basic facilities such as water, housing and electricity among the community and draws conclusion for the future of Indo‐Fijian political and economic rights.

Details

International Journal of Social Economics, vol. 31 no. 5/6
Type: Research Article
ISSN: 0306-8293

Keywords

Abstract

Details

Economic Growth and Social Welfare: Operationalising Normative Social Choice Theory
Type: Book
ISBN: 978-0-44451-565-0

Article
Publication date: 1 March 1993

Ernest Raiklin

Attempts to discover an internal logic in the high‐speed eventstaking place in the former Soviet Union. In addressing the problems ofthe country′s disintegration, examines the…

562

Abstract

Attempts to discover an internal logic in the high‐speed events taking place in the former Soviet Union. In addressing the problems of the country′s disintegration, examines the issue in its socioeconomic, political and territorial‐administrative aspects. Analyses, for this purpose, the nature of Soviet society prior to Gorbachev′s reforms, its present transitional stage and its probable direction in the near future.

Details

International Journal of Social Economics, vol. 20 no. 3/4
Type: Research Article
ISSN: 0306-8293

Keywords

Book part
Publication date: 18 November 2014

Ted D. Englebrecht, Xiaoyan Chu and Yingxu Kuang

Dissatisfaction with the current federal tax system is fostering serious interest in several tax reform plans such as a value-added tax (VAT), a flat tax, and a national retail…

Abstract

Dissatisfaction with the current federal tax system is fostering serious interest in several tax reform plans such as a value-added tax (VAT), a flat tax, and a national retail sales tax. Recently, one of the former Republican presidential candidates, Herman Cain, initiated a 999 tax plan. As illustrated on Cain’s official website, the 999 plan intends to replace current federal taxes with a 9% business flat tax, a 9% individual flat tax, and a 9% national sales tax. We examine the distributional effects of the 999 tax plan, as well as the current system it intends to replace, under both annual income and lifetime income approaches. Global measures of progressivity and bootstrap-t confidence intervals suggest that the current federal tax system is progressive while Cain’s 999 tax plan is regressive under the annual income approach. Under the lifetime income approach, both the current federal tax system and Cain’s 999 tax plan show progressivity. However, the current federal tax system is more progressive. The findings in this study suggest that Cain’s 999 tax plan should be considered more seriously and further analysis of the 999 tax plan is warranted.

Details

Advances in Taxation
Type: Book
ISBN: 978-1-78441-120-6

Keywords

Book part
Publication date: 13 April 2011

Bruce D. Meyer and James X. Sullivan

We examine the relationship between the business cycle and poverty for the period from 1960 to 2008 using income data from the Current Population Survey and consumption data from…

Abstract

We examine the relationship between the business cycle and poverty for the period from 1960 to 2008 using income data from the Current Population Survey and consumption data from the Consumer Expenditure Survey. This new evidence on the relationship between macroeconomic conditions and poverty is of particular interest, given recent changes in antipoverty policies that have placed greater emphasis on participation in the labor market and in-kind transfers. We look beyond official poverty, examining alternative income poverty and consumption poverty, which have conceptual and empirical advantages as measures of the well-being of the poor. We find that both income and consumption poverty are sensitive to macroeconomic conditions. A 1 percentage point increase in unemployment is associated with an increase in the after-tax income poverty rate of 0.9–1.1 percentage points in the long run, and an increase in the consumption poverty rate of 0.3–1.2 percentage points in the long run. The evidence on whether income is more responsive to the business cycle than consumption is mixed. Income poverty does appear to be more responsive using national level variation, but consumption poverty is often more responsive to unemployment when using regional variation. Low percentiles of both income and consumption are sensitive to macroeconomic conditions, and in most cases, low percentiles of income appear to be more responsive than low percentiles of consumption.

Details

Who Loses in the Downturn? Economic Crisis, Employment and Income Distribution
Type: Book
ISBN: 978-0-85724-749-0

Keywords

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