ERN: EquityPub Date : 2019-10-12DOI: 10.2139/ssrn.3468659
M. A. Workneh, F. Figari
{"title":"Non-Monetary Poverty in Ethiopia: Multidimensional Approach","authors":"M. A. Workneh, F. Figari","doi":"10.2139/ssrn.3468659","DOIUrl":"https://doi.org/10.2139/ssrn.3468659","url":null,"abstract":"This paper estimates the non-monetary multidimensional poverty index for Ethiopia using the Alkire and Foster (2011) counting approach. We use the 2016 Demographic Household Survey (DHS). Fourteen country-specific indicators are used to estimate the non-monetary multidimensional poverty with equal and unequal weighting approaches. The estimation with unequal weighting gives a much higher level of MPI compared to the equal weighting approach. Our results also show that cooking fuel, electricity, housing and women's literacy are more relevant indicators, which contributes much to compared with other indicators, for multidimensional poverty in Ethiopia. The contribution of place of delivery, domestic violence and women’s right to make decision is not also minimal. We also find that the multidimensional poverty index estimation depends on the specific weighting method used, the number of dimensions and indicators selected for estimation and the cross-dimensional cut-off applied.<br><br>Hence, policies which lessen poverty through improving cooking fuel, electricity, housing and women's literacy, particularly focused on rural areas, are needed. In addition, application of unequal weighting, which enable to see the trade-off between dimensions, is better to find out the indicators in which the society is more deprived rather than equal weighting.","PeriodicalId":282303,"journal":{"name":"ERN: Equity","volume":"107 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-10-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123331750","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
ERN: EquityPub Date : 2019-09-01DOI: 10.1111/ISSJ.12223
S. Asongu, N. Odhiambo
{"title":"Insurance and Inequality in Sub-Saharan Africa: Policy Thresholds","authors":"S. Asongu, N. Odhiambo","doi":"10.1111/ISSJ.12223","DOIUrl":"https://doi.org/10.1111/ISSJ.12223","url":null,"abstract":"In this study, we examine how insurance affects income inequality in sub-Saharan Africa, using data from 42 countries during the period 2004-2014. Three inequality variables are used, namely: the Gini coefficient, the Atkinson index and the Palma ratio. Two insurance premiums are employed, namely: life insurance and non-life insurance. The empirical evidence is based on the Generalized Method of Moments (GMM). Life insurance increases the Gini coefficient and increasing life insurance has a net positive effect on the Gini coefficient and the Atkinson index. Non-life insurance reduces the Gini coefficient and increasing non-life insurance has a net positive effect on the Palma ratio. The analysis is extended to establish policy thresholds at which increasing insurance premiums completely dampen the net positive effects. From the extended analysis, 7.500 of life insurance premiums (% of GDP) is the critical mass required for life insurance to negatively affect inequality, while 0.855 of non-life insurance premiums (% of GDP) is the threshold required for non-life insurance to negatively affect inequality. Policy thresholds are provided at which insurance penetration decreases income inequality in sub-Saharan Africa.","PeriodicalId":282303,"journal":{"name":"ERN: Equity","volume":"2 ","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"113947095","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
ERN: EquityPub Date : 2019-08-16DOI: 10.2139/ssrn.3783037
Tasnim Alam
{"title":"Canon of Taxation of Adam Smith, Philosophical Revelation and a Short Comparative Discussion in the Context of Modern Taxation Structures","authors":"Tasnim Alam","doi":"10.2139/ssrn.3783037","DOIUrl":"https://doi.org/10.2139/ssrn.3783037","url":null,"abstract":"The political economy holds a philosophy to govern with the idea to serve the nation from collecting revenue rather borrowing from economy internally or externally. Taxation is the main source of internal revenue collection of any nation which can be collected from indirect and direct taxation policy of any nation. Economic policy of a country decides which way it will collect revenue and serve the public. Import duty or customs duty, charges on certain luxury goods and services known as value added tax (VAT) or goods and services tax (GST) are indirect in nature and easy sources of collecting revenue which are the oldest form of taxation and direct sources of taxation can be income tax, capital gain tax and corporate income or profit tax, these type of taxes are new in the world and now comprises a major portion of whole revenue for a nation. Smith’s resolution on different principles of governance provided government’s political economic philosophy a legacy from the starting of industrial revolution era. Legitimacy of taxation by the governments has been backed by intellectual renaissance by Adam Smith. However, with the change in business process and technological advancement with the nature of economies modifications in these principles are present in the modern taxation arena. Modern day taxation structure consists of complex methods of revenue collection methods backed by philosophical evolution for the last two centuries in the field of political economy. Due to technological advancement and globalization the business pattern are changing rapidly then before and profit shifting from one place to another by the multinational corporations are generating cat and mouse race between the government tax regimes with money makers. Governments follow principles of taxation developed by philosophers like Adam Smith, David Ricardo and John Stuart Mill to impose taxes for collecting revenues with a view to create social justice and welfare. Ricardo and Mill were almost contemporary if we consider the development of principles of taxation. Both glorified their ideas how to tax and what not to tax through economic policies mentioning about the forms of taxation alongside providing classification which mostly still followed in the collection of revenue for government activities or expenditures. They provided ideas observing the effects of taxation on income, capitals and wealth’s, but now in this ever changing business world the most of the philosophy proposed by Ricardo and Mill still exists with few modifications in principles of taxation with the size and nature of economy and function of the governments.","PeriodicalId":282303,"journal":{"name":"ERN: Equity","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130308578","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
ERN: EquityPub Date : 2019-08-06DOI: 10.2139/ssrn.3432888
Ramandeep Kaur, S. Nagaich
{"title":"Inequalities in Economic Development: Comparative Assessment of Panjab, Haryana, Himachal Pradesh, Rajasthan and Uttar Pradesh","authors":"Ramandeep Kaur, S. Nagaich","doi":"10.2139/ssrn.3432888","DOIUrl":"https://doi.org/10.2139/ssrn.3432888","url":null,"abstract":"The economic reforms proposed in 1991 were drastic in relation to the conservative path that Indian economic policy had pass through since planning was introduced in 1951. It is safe to assume that the effects of such significant reforms would take a few years to become visible and show up in most macro-economic indicators. There is a large body of literature documenting the alarming inter-regional inequalities in Indian Economy. This paper attempts to document the performance of the five northern states of India: Panjab, Haryana, Himachal Pradesh, Rajasthan and Uttar Pradesh in what we call the ‘settled’ post-reform period 1994-95 to 2014-15, using the data from the ‘Data for use of Deputy Chairman, Planning Commission’ prepared by the Planning Commission dated 10th March, 2014. However, inter-state disparities have not gained the much focused attention. So, from the policy point of view, intra-state disparities requires the similar kind of focused documentation in today’s scenario for balanced regional development of the Indian Economy.","PeriodicalId":282303,"journal":{"name":"ERN: Equity","volume":"105 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123043848","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
ERN: EquityPub Date : 2019-05-10DOI: 10.2139/ssrn.3388559
Vincenzo Prete, Claudio Zoli
{"title":"The Political Economy of Educational Policies and Inequality of Opportunity","authors":"Vincenzo Prete, Claudio Zoli","doi":"10.2139/ssrn.3388559","DOIUrl":"https://doi.org/10.2139/ssrn.3388559","url":null,"abstract":"We propose a political economy model to explain cross-country differences observed in educational policies and to show how such heterogeneity is associated with the level of a country’s development and inequality. Parents, heterogeneous in terms of income and their child’s ability, vote over the educational policy, by deciding the allocation of a given public budget between basic and higher education. Parents can invest in supplemental private education to increase the probability of their children of being admitted to higher education. When the level of development is low and inequality between social classes is sufficiently large, there is low exchange social mobility in the access to higher education, and educational policies are characterized by a large relative per-student expenditure in higher education.","PeriodicalId":282303,"journal":{"name":"ERN: Equity","volume":"23 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-05-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131348976","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
ERN: EquityPub Date : 2019-04-29DOI: 10.2139/ssrn.3381575
A. Cappelen, Johanna Mollerstrom, Bjørn-Atle Reme, Bertil Tungodden
{"title":"A Meritocratic Origin of Egalitarian Behavior","authors":"A. Cappelen, Johanna Mollerstrom, Bjørn-Atle Reme, Bertil Tungodden","doi":"10.2139/ssrn.3381575","DOIUrl":"https://doi.org/10.2139/ssrn.3381575","url":null,"abstract":"\u0000 We report from a study of how uncertainty about whether a given inequality reflects performance or luck shapes distributive behaviour. We show theoretically that the reaction to uncertainty depends on how people trade off the probability of making a mistake when redistributing, and the size of this mistake. We show experimentally that uncertainty causes a strong egalitarian pull among a majority of meritocratic individuals. The theoretical framework and the experimental results are supported in general population surveys in the US and Norway. Our findings suggest that how people handle uncertainty about the source of inequality may be of great importance for understanding distributive conflicts in society.","PeriodicalId":282303,"journal":{"name":"ERN: Equity","volume":"6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-04-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123010289","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
ERN: EquityPub Date : 2019-03-01DOI: 10.2139/ssrn.3475617
Cristian F. Sepulveda
{"title":"Time-saving Goods, Time Inequalities, and Optimal Taxation","authors":"Cristian F. Sepulveda","doi":"10.2139/ssrn.3475617","DOIUrl":"https://doi.org/10.2139/ssrn.3475617","url":null,"abstract":"Time-saving goods are defined as market goods that reduce home labor requirements (e.g. restaurants; washing machines). Assuming that time savings are costly, this paper shows that lower-income individuals can purchase fewer time savings and enjoy less leisure time. Commodity tax rates affecting low-income individuals should depend more on time savings, and less on the classic Corlett and Hague rule. The related literature suggests to impose lower tax rates on goods that require less home labor. This paper shows that goods that offer greater time savings with respect to their more affordable substitutes should also receive favorable tax treatment.","PeriodicalId":282303,"journal":{"name":"ERN: Equity","volume":"161 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122501408","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
ERN: EquityPub Date : 2019-03-01DOI: 10.3386/W25640
M. Ravallion
{"title":"Ethnic Inequality and Poverty in Malaysia Since 1969","authors":"M. Ravallion","doi":"10.3386/W25640","DOIUrl":"https://doi.org/10.3386/W25640","url":null,"abstract":"Ethnic riots broke out in Malaysia in 1969, prompting a national effort at affirmative action favoring the poorer (majority) of “Bumiputera” (mainly Malays). Since then, Malaysia’s official poverty measures indicate one of the fastest long-term rates of poverty reduction in the world, due to both economic growth and falling inequality. Did ethnic inequality fall since 1969 and was that a key factor in the country’s success in reducing poverty and in managing inequality? New measures in this paper indicate a substantial decline in relative ethnic inequality. This brought down national relative inequality, though not enough to prevent rising absolute inequality, given the initial disparities. A new analytic decomposition of the rate of poverty reduction reveals that ethnic redistribution helped reduce poverty, although it was not as important as the overall rate of growth in household incomes. Despite past progress in reducing ethnic inequality, the responsiveness of the national poverty rate to ethnic redistribution remains high even today.","PeriodicalId":282303,"journal":{"name":"ERN: Equity","volume":"18 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133182722","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
ERN: EquityPub Date : 2019-02-21DOI: 10.2139/ssrn.3446485
Eloy Ávalos
{"title":"El índice de desigualdad de ingreso relativo. Medición para el Perú: 2004 - 2017. (The Index of Relative Income Inequality. Measurement for Peru: 2004 - 2017.)","authors":"Eloy Ávalos","doi":"10.2139/ssrn.3446485","DOIUrl":"https://doi.org/10.2139/ssrn.3446485","url":null,"abstract":"Spanish Abstract: El presente documento expone la fundamentacion, la formulacion y las propiedades de un indice que pretende medir la desigualdad de ingresos basado en el concepto de ingreso relativo de los hogares como unidades perceptoras de ingresos. Finalizaremos con una aplicacion empirica del indice para los departamentos del Peru durante el periodo 2004 - 2017. \u0000 \u0000English Abstract: This document develops the basis, formulation and properties of an index that aims to measure income inequality based on the concept of relative income of households as income earning units. We will conclude with an empirical application of the index for the departments of Peru during the period 2004 - 2017.","PeriodicalId":282303,"journal":{"name":"ERN: Equity","volume":"92 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-02-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126166512","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
ERN: EquityPub Date : 2019-01-20DOI: 10.2139/ssrn.3319463
Alberto Benítez Sánchez
{"title":"The Origin of Piketty’s Inequality r > g Considered in a General Framework","authors":"Alberto Benítez Sánchez","doi":"10.2139/ssrn.3319463","DOIUrl":"https://doi.org/10.2139/ssrn.3319463","url":null,"abstract":"This paper studies the origin of Piketty’s inequality between the profit rate (r) and the growth rate of the national income (g) by focusing on the growth rate (gamma) of the r⁄g ratio in an economy that grows gradually along a succession of production cycles. It is shown that, given a succession of three production cycles, the value of gamma in the last cycle is determined by the equation 1+gamma=(1+ ni)(1+ kappa) where ni is the growth rate of the profit share (alfa) in the last cycle while kappa is a function of three variables: the income/capital ratio of the last cycle, the values of the savings rate in the first two cycles and those of the growth rate of the income/capital ratio in the last two. The equation just presented is also relevant for a succession of more than three production cycles for which the yearly values of r, g and alfa are known. Indeed, in this case it is possible to calculate the average values of gamma and ni from the empirical data, which then can be used in the equation to determine the average value of kappa. Once the three variables are known, it is possible to calculate the parts attributable respectively to the average values of ni and kappa in the determination of the average value of gamma. A similar result is obtained regarding the part attributable to the average changes in the savings rate and in the growth rate of the income/capital ratio, taken together, in the determination of the average value of kappa. The paper also identifies those configurations of the relevant variables where gamma>0, out of which, when the succession of production cycles is long enough, results the inequality r>g.","PeriodicalId":282303,"journal":{"name":"ERN: Equity","volume":"235 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-01-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122445443","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}