scholarly journals New model of understanding income distribution through graduation of normalized Gini Mean Difference

2015 ◽  
Vol 2 (9) ◽  
pp. 1
Author(s):  
Dmitry S. Sсhmerling
Keyword(s):  
Income Distribution ◽  
Wage Rate ◽  
Gini Index ◽  
Wealth Inequality ◽  
Mean Difference ◽  
Wide Spread ◽  
Topical Problem ◽  
Integral Number ◽  
Gini Mean Difference ◽  
Wage System

<p>This work covers such a topical problem as the study of income and wealth inequality. It introduces the notion of “graduation”, i.e. rate of wage rate scale customary at time wage system. Graduation means introduction of the index m as a degree of the polynomial based on which the wage rate scale is distributed. In other words, using m allows to graduate Gini mean difference (0&lt;G&lt;1) by assigning integral number or fraction m, 0&lt;m&lt;∞ to every value of Gini index. Similarly, for each m we can calculate and estimate corresponding normalized Gini mean difference (the analog of Gini index used for simplicity of calculations).<br />Note that in this case we are not talking about distribution in real society, but in the simplest model of this society – a metaphoric community with only one person at each income level. This way we get the most distinct impression of the mechanism of income distribution that gives us the chance to assess scale of inequality. To some extent it clarifies the wide-spread Gini coefficient and “the nature of populations’ wealth”.</p>

scholarly journals Market Imperfections and Income Distribution

2016 ◽  
Vol 16 (2) ◽  
pp. 1147-1167
Author(s):  
Ensar Yılmaz
Keyword(s):  
Labor Market ◽  
Income Inequality ◽  
Income Distribution ◽  
Labor Markets ◽  
Wage Rate ◽  
Consumption Patterns ◽  
Market Imperfections ◽  
Luxury Goods ◽  
Sector Model ◽  
Two Sectors

Abstract This paper aims to search links between market imperfections and functional income distribution. For this purpose we construct a two-sector model – wage goods and luxury goods producing sectors – incorporating imperfections of the product and labor markets under income inequality. In a structure with interdependent and partially monopolistic and competitive markets, we analytically trace up the effects of the changes in power relations proxied by the degree of mark-ups in the product and labor market. The model shows that price and wage mark-ups in two sectors have crucial income distribution implications for the agents in the economy to varying extents. It also demonstrates the effect of the existence of the differentiated consumption patterns arising from income inequality on income distribution. Furthermore, it seems that unemployment level creates externalities on wage rate and on corporate taxes of firms.

scholarly journals The Dynamics of Wealth Inequality and the Effect of Income Distribution

PLoS ONE ◽  
2016 ◽  
Vol 11 (4) ◽  
pp. e0154196 ◽  
Author(s):  
Yonatan Berman ◽  
Eshel Ben-Jacob ◽  
Yoash Shapira
Keyword(s):  
Income Distribution ◽  
Wealth Inequality

scholarly journals PERTUMBUHAN EKONOMI, KETIMPANGAN PEDAPATAN DAN DESENTRALISASI DI INDONESIA

KINERJA ◽  
2016 ◽  
Vol 20 (1) ◽  
pp. 53
Author(s):  
Lestari Agusalim
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Linear Regression ◽  
Income Distribution ◽  
Gross Domestic Product ◽  
Gini Index ◽  
National Income ◽  
Secondary Data ◽  
Independent Variables ◽  
Regression Approach

AbstrakPenelitian ini bertujuan untuk mengkaji pengaruh desentralisasi dalam mendistribusikan pendapatan nasional untuk mengurangi ketimpangan pendapatan di Indonesia. Data yang digunakan adalah data sekunder, yaitu PDB sebagai representasi pendapatan nasional dan data indeks gini sebagai representasi tingkat ketimpangan pendapatan dengan rentang waktu 1978-2015. Metode analisis menggunakan regresi linear dengan pendekatan OLS dimana Indeks gini digunakan sebagai variabel dependen, dan PDB sebagai variabel independen. Selain itu, terdapat variabel independen lainnya, yaitu variabel dummy desentralisasi yang berguna untuk mengetahui pengaruh desentralisasi terhadap ketimpangan pendapatan. Hasil analisis menunjukkan bahwa dari aspek ekonomi, desentralisasi belum mampu mendistribusikan pertumbuhan ekonomi untuk memperkecil ketimpangan pendapatan masyarakat.Kata Kunci: Pertumbuhan Ekonomi, Ketimpangan Pendapatan, DesentralisasiAbstractThis research aims to analyze the effect of decentralization on national income distribution and the reduce of income Inequality in Indonesia. This research used secondary data with gross domestic product (GDP) representing national income and gini index data representing income inequality from 1978 to 2015. An OLS Linear Regression approach was employed where the gini index was the dependent variable, and the independent variables were GDP and the Dummy for decentralization implementation. The result revealed that decentralization had not been able to distribute economic growth to minimize income Inequality.Keywords: Economic Growth, Income Inequality, Decentralization

scholarly journals Economic Development

2019 ◽  
Author(s):  
Dhina Vadyza
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Income Distribution ◽  
Urban Areas ◽  
Gini Index ◽  
Production Factor ◽  
Real Economy ◽  
Long Run ◽  
Per Capita ◽  
Capita Output

Economic growth is a process of increasing per capita output that occurs continuously in the long run. Economic growth is one indicator of the success of development. Increasingly increasing economic growth usually increases people's welfare. While economic development is an effort to increase per capita income by processing potential economic forces into the real economy through investment, increasing knowledge, increasing skills, using technology, adding management skills and organizing.Economic growth is also related to the increase in "per capita output". The theory must include theories about GDP growth and theories about population growth. Then the third aspect is economic growth in a long-term perspective, that is, if for a long period of time the per capita output shows an increasing tendency.The distribution of income distribution in Indonesia is increasingly uneven. This can be seen from the increasing Indonesian Gini Index. As is known, the Gini index measures the income distribution of a country. The size of the Gini index Between 0 (zero) to 1 (one), the Gini index Equal to 0 (zero) indicates the index that the income distribution is perfectly equal, while the Gini index is 1 (one ) shows that the income distribution is totally uneven. Based on the data, the Indonesian Gini index continues to increase from year to year.The state of income distribution in Indonesia since 1970 can be said not to improve, this is caused by many factors, including the First production factor market (input market) which is the increase in labor supply which results in excess labor, low labor wages and limited employment opportunities in urban areas resulting in unemployment and urban slums.Second, land ownership. Land distribution is the main determinant of the extent of poverty and income distribution.

What Happened to Polarization and Inequality Between 2008 and 2018 in Spain?

2020 ◽  
Vol 66 (3) ◽  
pp. 209-222
Author(s):  
Rosa María García-Fernández ◽  
Candela Ruiz Tobar
Keyword(s):  
Economic Growth ◽  
Middle Class ◽  
Income Distribution ◽  
Gini Index ◽  
Upward Trend ◽  
Middle Income

The main objective of this paper is to empirically examine the dynamics of income distribution in Spain between 2008 and 2018 using SILC data. We consider the concepts of polarization and inequality as different aspects of the income distribution. To compute both aspects, we use the measures of Palacios-González and García-Fernández (2012) and the Gini index respectively. Findings indicate that polarization and inequality fluctuate around an upward trend during these years in Spain. Furthermore, the lower and middle income households have been more adversely affected than those with higher incomes, and the middle class has not benefited from the economic growth in Spain.

scholarly journals Measuring income inequalities beyond the Gini coefficient

2019 ◽  
Vol 28 (2) ◽  
pp. 561-578 ◽  
Author(s):  
Mikuláš Luptáčik ◽  
Eduard Nežinský
Keyword(s):  
Income Distribution ◽  
Gini Coefficient ◽  
Gini Index ◽  
European Countries ◽  
Lower Income ◽  
Poverty Index ◽  
New Approach ◽  
Income Groups ◽  
Head Count ◽  
Weights Restrictions

AbstractGrowing interest in the analysis of interrelationships between income distribution and economic growth has recently stimulated new theoretical and empirical research. Measures such as the head-count ratio for the poverty index or the widely used Gini coefficient are aggregated indicators describing the general extent of inequality without deeper insights into income distribution among households. To derive an indicator accounting for income distribution among income groups, we propose a new approach based on an output oriented DEA model where the input value is unitized to 1 for each country and weights restrictions imposed so as to favour a higher income share in the lower quantiles. We demonstrate the merits of this approach on the quintile income breakdown data of 29 European countries. Prioritizing lower income groups’ welfare, countries such as Slovenia and Slovakia can be equally favoured by the new proposed indicator while being assessed differently by the Gini index. An intertemporal analysis reveals a slight deterioration of income distribution in the majority of 29 European countries over the period of 2007–2016 in a Rawlsian sense.

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