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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 emerging market…

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 decades of…

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 expression…

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 rich in…

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 the number…

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 would…

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

Article
Publication date: 24 May 2024

Farah Nabihah Rahman, Salwa Hana Yussof and Khadijah Isa

This study aims to examine how Islamic educators’ perceptions on the imposition of personal income tax influences tax compliance behaviour in Malaysia.

Abstract

Purpose

This study aims to examine how Islamic educators’ perceptions on the imposition of personal income tax influences tax compliance behaviour in Malaysia.

Design/methodology/approach

A qualitative approach was adopted, using semi-structured interviews through online platforms. Participants were Islamic educators from higher educational institutions, who have been taxpayers for at least 10 years. They are assumed to hold high religious values, to possess knowledge about Islamic principles and to have adequate taxpayer experience.

Findings

The findings revealed that while all participants agreed that income tax imposition is permissible in Islam, they had different views on taxing side income. Side income from part-time jobs was viewed as taxable income, but side income from Islamic religious preaching was viewed as not subject to tax. Hence, participants’ tax compliance was influenced by their understanding. Wrong understanding leads to unintentional tax non-compliance. This study also found that religiosity promotes tax compliance behaviour.

Practical implications

The present study’s results may help the tax authority develop a mechanism from which to educate taxpayers and increase their awareness about properly reporting income from side jobs.

Originality/value

Prior studies examining the influence of religious beliefs on tax compliance have been conducted across religions. The present study was conducted with Muslim participants in Malaysia, and it used a qualitative approach to explore the issue more in-depth.

Details

Journal of Islamic Accounting and Business Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 16 May 2024

Lucia Errico, Andrea Mosca and Sandro Rondinella

This study explores whether ethnic minorities exhibit varying levels of income inequality compared to the host population.

Abstract

Purpose

This study explores whether ethnic minorities exhibit varying levels of income inequality compared to the host population.

Design/methodology/approach

The research leverages a unique immigration event in Italy, specifically the settlement of multiple Albanian groups in southern Italy during the 16th century. This historical occurrence enables an investigation into the role of cultural traits in income inequality, as these groups are situated in the same geographical region and often share borders.

Findings

The results, which remain consistent after undergoing various robustness checks, indicate that Albanian villages, while still preserving their identity and tradition, tend to experience an approximately 2% lower level of income concentration compared to similar Italian municipalities.

Originality/value

Our findings aim to provide supporting evidence for future policy considerations regarding the long-term impact of immigration on income inequality.

Details

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

Keywords

Article
Publication date: 21 May 2024

Trung Duc Nguyen, Lanh Kim Trieu and Anh Hoang Le

This paper aims to propose a dynamic stochastic general equilibrium (DSGE) model for the State Bank of Vietnam (SBV) to assess the response from the household sector to monetary…

Abstract

Purpose

This paper aims to propose a dynamic stochastic general equilibrium (DSGE) model for the State Bank of Vietnam (SBV) to assess the response from the household sector to monetary policy shocks through the consumption function. Moreover, the transmission from monetary policy to household consumption and income distribution is experimented with through the vector autoregression (VAR) model.

Design/methodology/approach

In this study, the authors used the maximum likelihood estimation to estimate the DSGE and VAR models with the sample from 1996Q1 to the end of 2021Q4 (104 observations).

Findings

The DSGE model’s results show that the response of the household sector is as expected in the theory: a monetary policy shock occurs that increases the policy interest rate by 0.29%, leading to a decrease in consumer spending of about 0.041%, the shock fades after one year. Estimates from the VAR model give similar results: a monetary policy shock narrows income inequality after about 2–3 quarters and this process tends to slow down in the long run.

Research limitations/implications

Based on the research results, the authors propose policy implications for the SBV to achieve the goal of price stability, and stabilizing the macro-economic environment in Vietnam.

Originality/value

The findings of the study have theoretical contributions and empirical scientific evidence showing the effectiveness of the implementation of the SBV’s monetary policy in the context of macro-instability, namely: flexibility, caution and coordination of different measures promptly.

Details

Journal of Financial Economic Policy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1757-6385

Keywords

Article
Publication date: 4 June 2024

Yong-Jae Choi and Seung-Nyeon Kim

This paper aims to study the impact of foreign direct investment (FDI) and official development assistance (ODA) on the economic growth of developing countries. This paper…

Abstract

Purpose

This paper aims to study the impact of foreign direct investment (FDI) and official development assistance (ODA) on the economic growth of developing countries. This paper classifies sample countries into two groups (low- and high-income developing countries) based on income level and investigates whether the two sources of foreign capital have different effects on the economic development of each subgroup of countries.

Design/methodology/approach

The authors analyze panel data on 93 countries from 1981 to 2020 using a two-stage least squares (2SLS) estimation. The 2SLS method is used to overcome the endogeneity problem between economic growth and FDI. The sources of the data are World Bank and OECD.

Findings

First, FDI inflows tend to accelerate per capita GDP growth in both total sample countries and within both groups of countries. Second, ODA has a significant impact on per capita GDP growth only for low-income developing countries. This result indicates that ODA seems to be particularly important for low-income developing countries.

Practical implications

This paper suggests policy implications that low-income developing countries should create an environment for more ODA funds to flow into themselves with efforts such as improving the credibility and effectiveness of the government related to ODA programs. It also provides implications for donors of ODA to focus their ODA resources on low-income developing countries to more effectively achieve the goal of helping developing countries’ economic growth.

Originality/value

This paper investigates whether FDI and ODA have different effects on the economic development of low- and high-income developing countries. To the best of authors’ knowledge, this point is not addressed in existing studies.

Details

International Journal of Development Issues, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1446-8956

Keywords

1 – 10 of over 113000