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1 – 10 of over 101000
Book part
Publication date: 26 November 2019

Dipyaman Pal, Chandrima Chakraborty and Arpita Ghose

The present study aims to determine the existence of simultaneous relationship between economic growth, income inequality, fiscal policy, and total trade of the 13…

Abstract

The present study aims to determine the existence of simultaneous relationship between economic growth, income inequality, fiscal policy, and total trade of the 13 emerging market economies as a group for the period 1980–2010. After establishing the existence of simultaneity between the above relationships, a simultaneous panel model has been formulated and estimated incorporating the nonlinearity among the variables as suggested by the existing literature. An inverted U-shape relationship is evident between (1) economic growth, income inequality, and total trade in economic growth equation, (2) income inequality, economic growth, and per capita income in income inequality equation, and (3) total trade and economic growth in total trade equation. Thus, the existence of a two-way nonlinear relationship is highlighted between economic growth, income inequality, and total trade. Apart from these nonlinear relationships, positive and significant effect of (1) gross capital formation, inflation, population growth, human capital, fiscal policy, monetary policy, and domestic credit to private sector on economic growth; (2) civil liabilities on income inequality; (3) gross capital formation and inflation on total trade; (4) total trade, population growth of those aged 65 years and above, political system on fiscal policy is highlighted. Also, negative and significant effect of (1) fiscal policy on income inequality and (2) income inequality on fiscal policy is revealed.

Details

The Gains and Pains of Financial Integration and Trade Liberalization
Type: Book
ISBN: 978-1-83867-004-7

Keywords

Book part
Publication date: 30 October 2009

Casey J. Dawkins

Purpose – Evidence suggests that during the 1990s, many US metropolitan areas saw fundamental changes in the spatial distribution of household income. Following two…

Abstract

Purpose – Evidence suggests that during the 1990s, many US metropolitan areas saw fundamental changes in the spatial distribution of household income. Following two decades of increasing economic segregation, many metropolitan neighborhoods saw declines in economic segregation, particularly those neighborhoods located within central cities and rural areas. This paper adapts the Spatial Ordering Index proposed by Dawkins (2007b) to explore these trends.

Methodology/Approach – Using US Census data, I calculate economic segregation indices for a sample of 205 US metropolitan areas in 1990 and 2000 and decompose changes in the indices into portions attributable to changes in the spatial distribution of households and portions capturing changes in the spatial distribution of aggregate income. I also examine regional variations in the decompositions.

Findings – The results suggest that changes in the spatial distribution of households and of income each influenced metropolitan economic segregation in different ways during the 1990s. Furthermore, the spatial dynamics of income segregation exhibited significant regional heterogeneity.

Originality/Value of paper – This paper presents a new approach to measuring the dynamics of economic segregation.

Details

Occupational and Residential Segregation
Type: Book
ISBN: 978-1-84855-786-4

Book part
Publication date: 17 November 2003

Harvey J Iglarsh and Ronald Gage Allan

Scholars suggest that failure to include implicit taxes in analyses of vertical equity understates the progressivity of the tax system. This paper develops an analytic…

Abstract

Scholars suggest that failure to include implicit taxes in analyses of vertical equity understates the progressivity of the tax system. This paper develops an analytic expression for imputing the implicit tax associated with tax-exempt bonds using the tax-exempt interest income reported on individual income tax returns. To measure progressivity, Kakwani indices are calculated using three definitions of income and three measures of tax liability. In addition, the indices are computed by adding implicit income to the income measure. Examination of the Kakwani indices leads to the conclusion that the tax system is progressive for all measures of tax liability. Total tax (explicit plus implicit), measured against explicit plus implicit income, is more progressive than explicit tax measured against explicit income. Including the implicit tax associated with tax-exempt interest in the measurement of tax progressivity increases the level of progressivity of the tax system slightly.

Details

Advances in Taxation
Type: Book
ISBN: 978-0-76231-065-4

Book part
Publication date: 27 June 2008

James F. Sepe and J. David Spiceland

This chapter provides an approach for teaching the income statement within an earnings quality framework in an intermediate accounting course. Not only is the approach…

Abstract

This chapter provides an approach for teaching the income statement within an earnings quality framework in an intermediate accounting course. Not only is the approach rich in content, but it also is an engaging pedagogical device. The article provides a broad outline and then fills in the details with discussion, information, and examples.

Details

Advances in Accounting Education
Type: Book
ISBN: 978-1-84950-519-2

Book part
Publication date: 20 May 2003

Jeffrey A Mills and Sourushe Zandvakili

Using decomposable measures of inequality, the implications of household structure are investigated by examining inequality between and within household groups based on…

Abstract

Using decomposable measures of inequality, the implications of household structure are investigated by examining inequality between and within household groups based on the number of exemptions, which correlates with household size, and the filing status, which correlates with the common forms of household structure, i.e. married, single, head of household. Detailed household income data are used to measure income inequality for both pre-tax/transfer and post-tax/transfer definitions of income. These decompositions provide information about the degree of inequality, both before and after taxes and transfers, which is due to household size and filing status. The bootstrap is employed to construct standard errors for the inequality measures and their decompositions, and hypothesis tests are conducted to determine whether the observed changes in the distribution of income are statistically significant.

Details

Fiscal Policy, Inequality and Welfare
Type: Book
ISBN: 978-1-84950-212-2

Book part
Publication date: 25 May 2022

Krishnendu Maji

As hypothesized by Gerschenkron (1962), lower income countries would tend to grow at a faster rate than higher income countries and, as a result, their average incomes

Abstract

As hypothesized by Gerschenkron (1962), lower income countries would tend to grow at a faster rate than higher income countries and, as a result, their average incomes would converge in the long run. In addition to that hypothesis, theoretical studies to assess the impact of globalization on international economic convergence remain ambiguous. To address both the issues simultaneously, this study attempts to analyze the trend and possible association between the two, i.e., cross-country per capita income differential and globalization. This study incorporates a long list of countries (160 Countries) for a fairly long period of time (from 1990 to 2019). As expected, the study found a steady rise in global trade to GDP ratio, indicating a rising level of globalization in the assessment period. In addition to that, the study also found a rising level of average cross-country per capita real GDP (based on purchasing power parity (PPP)) differential in the given time horizon, contradicting Gerschenkron hypothesis. Finally, applying the ARDL bounds testing procedure, the study finds that cross-country per capita income differential and globalization are cointegrated; and the net effect of globalization on income differential is positive. Therefore, given the data, the study concludes that, over the years, along with rising level of globalization, per capita income differential diverges which causes cross-country per capita income inequality to rise.

Details

Globalization, Income Distribution and Sustainable Development
Type: Book
ISBN: 978-1-80117-870-9

Keywords

Open Access
Article
Publication date: 6 February 2023

Hazera-Tun- Nessa and Katsushi S. Imai

Existence of working poverty reduces the effectiveness of the strategy of “increasing employment to reduce poverty”. Developed countries are already concerned about it but…

Abstract

Purpose

Existence of working poverty reduces the effectiveness of the strategy of “increasing employment to reduce poverty”. Developed countries are already concerned about it but insufficient attention has been made by developing countries. Focusing on developing countries this study identifies (1) the effects of trade openness (TO) on working poverty and (2) whether the working poverty trap exists or not in developing countries. Both objectives are also analyzed for three subsamples of low income, lower-middle income and upper-middle income developing countries.

Design/methodology/approach

Panel data for 98 developing countries over the period of 2000–2016 have been collected for the study. Fixed effect and GMM methods are applied for static and dynamic analysis, respectively.

Findings

The study finds that TO significantly reduces working poverty rate (WPR) (mainly driven up by upper-middle income developing countries). The positive association between WPR with its previous year's rate proves the existence of working poverty trap.

Research limitations/implications

The study's outcome is subject to selected time, countries and methods. Future research should use more improve methods and should identify the channels through which TO could affect working poverty.

Practical implications

Middle income and upper-middle income developing countries should increase TO to reduce the working poverty. Low income developing countries that have the highest working poverty should search the way to derive beneficial effects of trade on working poverty.

Social implications

Working poverty is not only a developed country issue rather it is a global phenomenon. Hence, it is expected that the study will raise the social consciousness about this phenomenon in developing countries too.

Originality/value

The study fulfills the gaps of identifying the effects of TO on working poverty and existence of in-work poverty trap in developing countries.

Details

International Trade, Politics and Development, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2586-3932

Keywords

Article
Publication date: 23 January 2023

Juan Ignacio Martín-Legendre, Pablo Castellanos-García and José Manuel Sánchez-Santos

This paper aims to study, by means of an empirical approach, how monetary policy might affect the distribution of individual income.

Abstract

Purpose

This paper aims to study, by means of an empirical approach, how monetary policy might affect the distribution of individual income.

Design/methodology/approach

After describing the channels through which monetary policy could impinge on income distribution, the authors carry out a panel analysis of 62 countries that control their monetary policy for the period 1996–2015.

Findings

Using two possible proxy variables for monetary policy (the monetary aggregate M3 and the real interest rates), the results reveal a significant positive relationship between real interest rates and income inequality measured through the market Gini coefficient and polarization ratios. The findings suggest that central bankers should be more aware of the redistributive effects of monetary policy.

Research limitations/implications

It should be mentioned the major challenge of data limitation in the empirical investigation on the relationship between monetary policies and inequalities.

Practical implications

The empirical evidence presented in this paper supports the premise that central bankers should not ignore the unintended redistributive consequences of their actions. In this regard, it is worth noting that if, in addition to price stability, central banks are also responsible for financial stability; the rationale behind central bank independence needs to be reconsidered.

Originality/value

An outstanding feature of the paper is its sample size and the variety of countries included in the sample, which includes countries from all continents and with very different levels of economic development. Also, unlike papers based on forecasting modeling – e.g. Vector autoregression (VAR) or Structural vector autoregression (SVAR) models, the study follows an explanatory approach, including not only monetary variables, but also a series of regressors that may have a meaningful and significant impact on inequality, according to a wide literature.

Details

Journal of Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3585

Keywords

Open Access
Article
Publication date: 15 December 2022

Son Nghiem and Xuan-Binh (Benjamin) Vu

Basic income (BI) is predicted to be the major economic intervention in response to raising income inequality and accelerating technological progress. Financing is often…

Abstract

Purpose

Basic income (BI) is predicted to be the major economic intervention in response to raising income inequality and accelerating technological progress. Financing is often the first question that arises when discussing a BI. A thorough answer to this question will determine the sustainability of any BI program. However, BI experiments implemented worldwide have not answered this question. This paper explores two options for a BI program in Australia: (1) BI and (2) top-up basic income (TBI).

Design/methodology/approach

The authors employ “back-of-the-envelope” calculations with the latest publicly available data on income distribution, the poverty line and the share of income tax in the government revenue to estimate the costs of implementing BI in Australia.

Findings

Even without any change in the current tax regulations, the TBI option, which requires a contribution of 2–3% disposable income from net contributors, will guarantee that no Australian family lives under the current national poverty line. The BI for all options is not financially feasible under the current tax and transfer regulations because it requires an additional tax rate of at least 42% of disposable income from net contributors.

Practical implications

The results of this study can serve as inputs for the design and implementation of BI options in Australia and similar countries.

Originality/value

This is the first paper that examines the macroeconomic effects of BI options in Australia.

Details

Journal of Economics and Development, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1859-0020

Keywords

Article
Publication date: 26 December 2022

Nurul Shahnaz Mahdzan, Mohamad Fazli Sabri, Abdul Rahim Husniyah, Amirah Shazana Magli and Nazreen Tabassum Chowdhury

The first objective of this study is to analyze whether financial behavior (FB), financial stress (FS), financial literacy (FINLIT) and the locus of control (LOC…

Abstract

Purpose

The first objective of this study is to analyze whether financial behavior (FB), financial stress (FS), financial literacy (FINLIT) and the locus of control (LOC) influence subjective financial well-being (SFWB) among low-income households in Malaysia. The second objective is to investigate whether the use of digital financial services (DFS) moderates the influence of FB and FS, on SFWB.

Design/methodology/approach

Motivated by the literature on transformative service research (TRS), this study examines how the use of DFS impact SFWB among low-income households in Malaysia. Low-income households are chosen as they are more likely to be financially excluded and lack financial knowledge and skills. Using an interviewer-administered survey, trained enumerators collected data from 1,948 low-income households in Malaysia, selected using a two-stage sampling based on the National Household Sampling Frame obtained from the Department of Statistics Malaysia.

Findings

Results reveal that SFWB is positively influenced by FB and the LOC, and is negatively impacted by FS and FINLIT. The evidence shows that the use of DFS counterintuitively weakened the strength of the relationship between FB and SFWB, but effectively reduced the adverse effect of FS on SFWB.

Practical implications

To reverse the signs of relationship, financial services marketers need to identify the specific types of DFS that low-income households use in order to provide targeted marketing efforts and financial education to promote the use of DFS on a more holistic basis to increase financial well-being.

Originality/value

The findings of this study add to the body of knowledge deliberating on the opposing effects of technology on consumers' welfare and well-being. This study focuses on the lower-income stratum of Malaysian households as this group of the population is more likely to be financially excluded and have deficiencies in financial knowledge and skills. Findings of this study show that DFS use can actually diminish the positive impact of FB on SFWB while reducing the adverse effect of FS on SFWB.

Details

International Journal of Bank Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0265-2323

Keywords

1 – 10 of over 101000