Class Structure and the US Personal Income Distribution, 1918-2012

2015 ◽  
Vol 67 (2) ◽  
pp. 334-363 ◽  
Author(s):  
Simon Mohun
Keyword(s):  
Income Distribution ◽  
Personal Income ◽  
Class Structure ◽  
The Us

scholarly journals Macroeconomic effects of personal and functional income inequality: Theory and empirical evidence for the US and Germany

2018 ◽  
Vol 65 (3) ◽  
pp. 289-318 ◽  
Author(s):  
Franz Prante
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
The United States ◽  
Personal Income ◽  
Aggregate Consumption ◽  
Long Run ◽  
Inequality Theory ◽  
The Us ◽  
Additional Demand ◽  
Macroeconomic Effects

This paper presents a simple post-Kaleckian model of distribution and growth that incorporates personal income inequality and interdependent social norms. The model shows in an easily accessible manner that macroeconomic effects of changes in personal and functional income distribution can potentially reinforce or dampen each other. The resulting variety of demand and growth regimes is due to different distributional effects on consumption demand. Therefore, the second part of the paper investigates the empirical relevance of the additional demand regimes by estimating aggregate consumption functions with variables for personal and functional income distribution for the United States and Germany. We find similar effects of functional income distribution for both countries. However, for the US, we find positive long-run effects of personal income inequality on consumption. The effect is strongest for the top 10% income share and the Gini index and less strong for the top 5% and 1% income shares. While this is evidence for relative consumption patterns, it also supports the view that the ?super rich? are a relatively distant class for most people - questioning the notion of expenditure cascades from the very top to the very bottom. In contrast, for Germany we fail to find compelling evidence for effects of personal income distribution.

Optimal Taxation of Families: Mirrlees meets Becker*

2021 ◽  
Author(s):  
Musab Kurnaz
Keyword(s):  
Quantitative Analysis ◽  
Income Distribution ◽  
Income Tax ◽  
Optimal Taxation ◽  
Tax Credits ◽  
Child Rearing ◽  
Welfare Gains ◽  
Us Economy ◽  
Parental Time ◽  
The Us

Abstract This paper studies optimal taxation of families—a combination of an income tax schedule and child tax credits. Child-rearing requires both goods and parental time, which distinctly impact the design of optimal child tax credits. In the quantitative analysis, I calibrate my model to the US economy and show that the optimal child tax credits are U-shaped in income and are decreasing in family size. In particular, the optimal credits decrease in the first nine deciles of the income distribution and then increase thereafter. Implementing the optimum yields large welfare gains.

scholarly journals UNIVERSAL STRUCTURE OF THE PERSONAL INCOME DISTRIBUTION

Fractals ◽  
2001 ◽  
Vol 09 (04) ◽  
pp. 463-470 ◽  
Author(s):  
WATARU SOUMA
Keyword(s):  
Income Distribution ◽  
Asset Price ◽  
Mean Value ◽  
High Income ◽  
Personal Income ◽  
Middle Income ◽  
The Mean ◽  
Universal Structure ◽  
Log Normal ◽  
Log Normal Distribution

We investigate the Japanese personal income distribution in the high income range over the 112 years (1887–1998), and that in the middle income range over the 44 years (1955–1998). It is observed that the distribution pattern of the log-normal with power law tail is the universal structure. However, the indexes specifying the distribution differ from year to year. One of the index characterizing the distribution is the mean value of the log-normal distribution; the mean income in the middle income range. It is found that this value correlates linearly with the gross domestic product (GDP). To clarify the temporal change of the equality or inequality of the distribution, we analyze Pareto and Gibrat indexes, which characterize the distribution in the high income range and that in the middle income range, respectively. It is found for some years that there is no correlation between the high income and the middle income. It is also shown that the mean value of Pareto index equals to 2, and the change of this index is effected by the change of the asset price. From these analysis, we derive four constraints that must be satisfied by mathematical models.

Government Policy and Equality of Income Distribution in the Netherlands (1945-1986)

1992 ◽  
Author(s):  
P. Van Wijngaarden
Keyword(s):  
The Netherlands ◽  
Social Security ◽  
Income Distribution ◽  
Government Policy ◽  
Policy Instruments ◽  
Social Security System ◽  
Personal Income ◽  
Security System ◽  
Government Policies ◽  
Income Differentials

Inequality of income distribution in the Netherlands has since 1945 strongly been influenced by government policies. Until the end of the 1970s, governments pursued policies designed to reduce income differentials. The most important results were the construction of a social security system and the attainment of greater equality in the sphere of personal income distribution. In the 1980s, these policies were reversed. The earning discrepancies between groups of gainfully employed and the gap between the employed and unemployed were growing. There were drastic cuts in social security. In this paper, the most important instruments, policy instruments, and objectives, and their results are analyzed.

The Incomes of the Plutocrats in a Comparative Perspective

2021 ◽  
pp. 152-171
Author(s):  
Francis Teal
Keyword(s):  
Nineteenth Century ◽  
Income Distribution ◽  
Comparative Perspective ◽  
Average Wage ◽  
Male Character ◽  
Pride And Prejudice ◽  
The Us ◽  
The Rich ◽  
The Uk

We now move to examine the top of the income distribution and begin by asking whether Mr Darcy, the central male character in Jane Austen’s novel Pride and Prejudice, would be regarded as a plutocrat today. If his income were converted to contemporary amounts it would be some £600,000. We show that Mr Darcy would need to earn some £8 million to be as rich as his nineteenth-century predecessor relative to the average wage. To understand how those super-high incomes arise, we introduce the Paretian distribution which we do first informally and then more formally. It is a distribution of this form which could produce what we see, a few very highly paid individuals whose incomes—up in the stratosphere of the super-rich—would still be very spread out. We use the Paretian distribution to estimate the number of plutocrats in the US, the UK, and China and show the incomes of the richest of the rich.

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