This article revisits the macroeconomic foundations and political economy of national growth models. It argues that the neo-Kaleckian model, which inspired the emergent growth model perspective and focuses primarily on the functional income distribution, can be usefully complemented by theories of private household consumption that focus on the personal distribution of income. The examples of the export-led and debt-led growth models of Germany and the United States, respectively, show how institutional differences help to explain why different (...) countries developed different patterns of income distribution and how income distribution and institutions interacted to generate financial imbalances in different sectors of the economy. (shrink)

Income distribution continues to be a major problem of the countries. Turkey is one of the countries that are in the high Gini Coefficient if we compare it with the EU members. It is known that Turkey has applied various economic policies to solve this problem. In order to ensure social justice the application of redistribution policies is the first solution that comes in mind. However, its implementation option is limited due to its negative effect on economic growth. (...) The most effective option to ensure social justice is to give importance to the education sector without compromising on the economic growth. In this study we will discuss, firstly, income distribution movements over the years and analyze its impact on the political economy. Especially in the time period of 1977-2014, the effects of an increase in the economic growth due to an increase in the number of primary, secondary and university graduates will be investigated by using the ARDL boundary test approach. The obtained finding of the long term relationship of these variables and the contribution of their relationship on the estimated result of an increase in the education index caused by a decrease in the Gini Coefficient that is shown in the form of improvement effects of income distribution. According to the findings in the literature the investments made for education in Turkey have made a significant contribution to the improvement of income distribution. Lastly, in order to increase the influence of education on economy some policy recommendations have been discussed in the study. (shrink)

The question of the relation between the economic reforms introduced in or contemplated by the East European communist countries (including now a days the Soviet Union as well) and China, and the pattern of income distribution is obviously of great interest: how will the increased use of market mechanisms affect the degree of inequality? Strong views on the matter are frequently voiced both by proponents and opponents of market-oriented reforms, but there is surprisingly litde empirical evidence based on (...) systematic research. To my knowledge the work under review is the first book with such an explicit objective. (shrink)

Economic inequality has become a focus of prime interest for economic analysts and policy makers. This book provides an integrated approach to the topics of inequality and personal income distribution. It covers the practical and theoretical bases for inequality analysis, applications to real world problems and the foundations of theoretical approaches to income distribution. It also analyses models of the distribution of labour earnings and of income from wealth. The long-run development of income (...) - and wealth - distribution over many generations is also examined. Special attention is given to an assessment of the merits and weaknesses of standard economic models, to illustrating the implications of distributional mechanisms using real data and illustrative examples, and to providing graphical interpretation of formal arguments. Examples are drawn from US, UK and international sources. (shrink)

This 1974 collection of six essays in economic theory represents a major contribution to the field. The first contains the formulation of the Ricardian system, whilst the next two contain, respectively, the author's synthetic treatment of the complex problems of fluctuations and economic growth, and his well-known theorem that in the long run the rate of profit and income distribution are independent of the propensities to save of the working class. The essays that follow provide the missing links: (...) a coherent picture of the macroeconomic theories that have originated in Cambridge and a discussion of their deep foundations in classical economic analysis. Finally, the author evaluates some economic controversies and draws his conclusions on the basic forces determining rate of profit in the process of economic growth. Although the arguments are highly theoretical, they require no knowledge of mathematics beyond elementary calculus and algebra. (shrink)

In this book Kristi A. Olson addresses the question of fair labor income distribution by proposing the solidarity solution, a new test she defines and defends. She takes as her starting point the envy test, discussed by the philosophers Ronald Dworkin and Philippe Van Parijs and by the economists Jan Tinbergen, Hal Varian, Marc Fleurbaey, Duncan Foley, and Serge-Christophe Kolm. According to the envy test, a distribution is fair when no one prefers someone else's circumstances to their (...) own. After rejecting the envy test, Olson distinguishes two types of envy: personal and impersonal. Impersonal envy makes a demand on others; personal envy, in contrast, does not. Using this distinction, Olson argues that fair labor-income bundles must be impersonal envy-free, but need not be personal envy-free. The book concludes by relating the solidarity solution to concrete problems such as the gender wage gap and taxation. (shrink)

What is inequality? In the late 1990s there was an explosion of interest in the subject that yielded a substantial body of formal tools and results for income-distribution analysis. Nearly all of this is founded on a small set of core assumptions - such as the Principle of Transfers, scale independence, the population principle∑ - that are used to give meaning to specific concepts of inequality measurement, inequality ranking and, indeed, to inequality itself. But does the standard axiomatic (...) structure coincide with public perceptions of inequality? Or is the economist's concept of inequality a thing apart, perpetuated through serial brainwashing in the way the subject is studied and taught? In this 1999 book, Amiel and Cowell examine the evidence from a large international questionnaire experiment using student respondents. Along with basic 'cake-sharing' issues, related questions involving social-welfare rankings, the relationship between inequality and overall income growth and the meaning of poverty comparisons are considered. (shrink)

The author advocates that governments ensure the involvement of the poor not only in the market reforms but most importantly in the policy-making process. The poor will demonstrate a higher level of success in the emerging economies than many expect.

Using a sample of seventy-seven countries, this paper focuses on marginal tax rates and the income thresholds at which they apply to examine how the tax changes of the 1980s and 1990s have influenced economic growth, the distribution of income, and the share of taxes paid by various income groups. Many countries substantially reduced their highest marginal rates during the 1985-1995 period. The findings indicate that countries that reduced their highest marginal rates grew more rapidly than (...) those that maintained high marginal rates. At the same time, the income distribution in several of the tax cutting countries became more unequal while there was little change or even a reduction in income inequality in most countries that maintained high marginal rates. Finally, the evidence suggests that there was a shift in the payment of the personal income tax away from those with low and middle incomes and toward those with the highest incomes. (shrink)

Large increases unofficial economies in many transition economies arise from a dynamic interaction with rising income inequality and public sector changes in multiple equilibria system. Returns to unofficial activity are first increasing and then decreasing, implying two distinct stable equilibria, with changes in inequality possibly causing a jump from one to the other. Multiple regressions of data from 18 transition economies find income inequality significantly correlated with the size of the unofficial economy, with the maximum annual rate of (...) inflation also significantly correlated. The latter appears to be the only significant correlate with the increase in the size of the unofficial economy. (shrink)

It is recognised that the gap between rich and poor in Britain is widening faster than in any comparable country. This important issue is attracting increasing attention after long neglect. Economists and others concerned with problems linked with inequality are investigating factors contributing to the situation. Based on results of the first recent major research programme in this area, this book, first published in 1996, examines wealth distribution in the United Kingdom over the last two decades. Leading specialists in (...) the area tackle the problem from a wide variety of perspectives. Contributions include: the analysis of income distribution; the effects of greater female participation in the labour force; social security reform; and geographical variation at the national and local scale. Understanding the complexity of these factors is crucial to designing policies which can begin to cope with income inequalities. (shrink)

For some thirteen years now, the World Bank (‘the Bank’) has regularly reported the number of people living below an international poverty line, colloquially known as ‘$1/day’.3 Reports for the most recent year, 1998, put this number at 1,175.14 million.4 The Bank’s estimates of severe income poverty — its global extent, geographical distribution, and trend over time — are widely cited in official publications by governments and international organizations and in popular media, often in support of the view (...) that liberalization and globalization have helped to reduce poverty worldwide. For instance, the President of the World Bank recently declared: “Over the past few years, these better policies have contributed to more rapid growth in developing countries’ per capita incomes than at any point since the mid-1970s. And faster growth has meant poverty reduction: the proportion of people worldwide living in absolute poverty has dropped steadily in recent decades, from 29% in 1990 to a record low of 23% in 1998. After increasing steadily over the past two centuries, since 1980 the total number of people living in poverty worldwide has fallen by an estimated 200 million — even as the world’s population grew by 1.6 billion.”. (shrink)

There exists a significant disparity within society between individuals in terms of intelligence. While intelligence varies naturally throughout society, the extent to which this impacts on the life opportunities it affords to each individual is greatly undervalued. Intelligence appears to have a prominent effect over a broad range of social and economic life outcomes. Many key determinants of well-being correlate highly with the results of IQ tests, and other measures of intelligence, and an IQ of 75 is generally accepted as (...) the most important threshold in modern life. The ability to enhance our cognitive capacities offers an exciting opportunity to correct disabling natural variation and inequality in intelligence. Pharmaceutical cognitive enhancers, such as modafinil and methylphenidate, have been shown to have the capacity to enhance cognition in normal, healthy individuals. Perhaps of most relevance is the presence of an ‘inverted U effect’ for most pharmaceutical cognitive enhancers, whereby the degree of enhancement increases as intelligence levels deviate further below the mean. Although enhancement, including cognitive enhancement, has been much debated recently, we argue that there are egalitarian reasons to enhance individuals with low but normal intelligence. Under egalitarianism, cognitive enhancement has the potential to reduce opportunity inequality and contribute to relative income and welfare equality in the lower, normal intelligence subgroup. Cognitive enhancement use is justifiable under prioritarianism through various means of distribution; selective access to the lower, normal intelligence subgroup, universal access, or paradoxically through access primarily to the average and above average intelligence subgroups. Similarly, an aggregate increase in social well-being is achieved through similar means of distribution under utilitarianism. In addition, the use of cognitive enhancement within the lower, normal intelligence subgroup negates, or at the very least minimises, several common objections to cognitive enhancement. Subsequently, this paper demonstrates that there is a compelling case for cognitive enhancement use in individuals with lower, normal intelligence. (shrink)

Universal basic income proposes providing instalments of constant magnitude to all. One problem with a stable basic income across life is that it seems unfair to shorter-lived persons, who are worst-off due to premature death and receive less over their whole lives. Basic capital solves this problem by providing a one-off grant to the young, but I argue that it mistreats long-lived persons, as it does not guarantee their real freedom across life. There is a dilemma between these (...) proposals regarding their respective unfairness to the short- and long-lived. The solution I propose is a net basic income of decreasing magnitude until a specific age, after which the income is constant. This solution is compatible with constant income benefits across life, and it offers a fair answer to the problem of unequal longevity, a widely neglected but essential challenge in debates about basic income. (shrink)

The income gap in Chinese society has increased significantly in recent years. This disparity can be confirmed by the critical level of China’s current Gini coefficient. In response, que­stions concerning social stratification and mobility in China, and how to improve China’s income distribution have become key discussions among Chinese sociologists.The income gap, a result of economic development, can be examined via discussions of income disparity between different regions, occupational groups and ethnic groups. Previous analyses based (...) on official government and academic statistical data have tended to focus primarily on regional and occupational differences in relation to income disparity. However, the income gap exhibited between different ethnic groups is in effect directly linked to inconsistencies in income acquisition and employment opportunities. Furthermore, this link is intimately related to China’s national policies in ethnic affairs. (shrink)

This paper examines the effect of the image of destinations on the wage income of resident households, and the corresponding income inequality, from a novel perspective. This work uses China’s excellent tourism city image program, which is an urban planning policy implemented by the central government across cities to enhance the image of the city destination in the minds of tourists, and then promote tourist motivation and local tourism development to assess the effect on household wage income (...) and its distribution. Results show that the program significantly increases household wage income by increasing employment opportunities, promoting business and population agglomeration, and improving urban infrastructure. Additionally, the image of the city destination promotion causes an increase in income inequality among households. (shrink)

The word “justice” is used in several different ways. First, justice is sometimes understood as moral permissibility applied to distributions of benefits and burdens (e.g., income distributions) or social structures (e.g., legal systems). In this sense, justice is distinguished by the kind of entity to which it is applied, rather than a specific kind of moral concern.

Distributive justice, defined as justice in distribution of income and wealth, is impossible. Income and wealth are distributed either unequally or equally. If unequally, then those with less are unjustly subject to social contempt. But equal distribution is impossible because it is inconsistent with bargaining to advance our own good. Hence justice in distribution of income and wealth is impossible. More generally, societies where social relations are mediated by money are necessarily unjust, and Marx (...) was wrong to think a socialist society which retained money would lead to communism. Contributive justice proposes that each flourishes by advancing the flourishing of others. To achieve this goal all labor, both simple and complex, must be shared among all capable of doing it. The good of contributing our abilities to benefit others is then available to all non-competitively. (shrink)

Basic income policies have recently enjoyed a great deal of discussion, but they are not a natural fit with views of distributive or social justice endorsed by many moral and political philosophers. This essay develops and defends a new view of social justice, called relational sufficientarianism, which is more compatible with a universal basic income. Relational sufficientarianism holds that persons in a just society must have sufficient social status, but not necessarily equal social status. It argues that this (...) view offers a more plausible account of just social relations than relational egalitarianism, a better account of the threshold for sufficiency than distributive sufficientarianism, and can serve as a more suitable theoretical backing for a universal basic income than either of these other views, or distributive egalitarianism. (shrink)

Why should I let the toad work Squat on my life? Can’t I use my wit as a pitchfork And drive the brute off? Six days of the week it soils With its sickening poison — Just for paying a few bills! That's out of proportion. From Philip Larkin, ‘Toads’. ABSTRACT This paper mounts a Rawlsian argument for unconditional basic income on the grounds that it maximins the distribution of income and wealth understood as a social basis (...) of self‐respect. The most important objection to this argument available to Rawlsians is that basic income violates the demands of reciprocity, where reciprocity in any scheme of distribution is a requirement of justice. The second half of the paper addresses this objection. It is argued there that even if the objection can be made successfully by Rawlsians (and this is not clear), it is not sufficient to divest them of a commitment to basic income, given some practical considerations about the implementation of alternatives to basic income. (shrink)

This paper investigates individual differences-based income entitlements in a context of political equality. Three regimes for distributing income are considered: guaranteed basic income, no guaranteed income, and guaranteed work opportunities. Whereas GBI attends to equality while remaining silent on difference and NGI attends to difference while de-emphasizing equality, GWO attends to both difference and equality. Balancing individual differences and political equality is a plausible goal for distributive justice, and the GWO regime seems well suited to accommodate (...) these joint concerns. (shrink)

Among the most striking developments in the process of economic transition has been the very diverse paths these economies have taken with respect to income distribution, with some maintaining degrees of equality similar to the socialist era while others now exhibit degrees of inequality noticeably greater than any advanced market capitalist economies. We argue that these outcomes reflect divergent dynamics with multiple equilibria wherein the pattern of income distribution interacts with the level of corruption and the (...) breakdown of the public sector and social safety nets, with the possibility of societies going sharply in one direction or another. This argument is supported by empirical data linking income inequality and measures of the size of the unofficial economy in a set of fifteen transitional economies. (shrink)

The compensatory desert argument is an argument that purports to justify inequalities in (some) incomes generated by a free labour market. It holds, first, that the principle of compensation is a principle of desert; second, that a distribution justified by a principle of desert is just; and third, that (some) rewards people reap on a free labour market are compensation for costs they incur. It concludes that therefore, a distribution of (some) rewards generated by a free labour market (...) is just. In this chapter I criticise the first two premises of this argument. I argue that the principle of compensation is not a principle of desert (sections 3 and 4), and that a distribution of deserved compensatory payments may be unjust (sections 5 and 6). Before developing my critique of the compensatory desert argument, I start by illustrating further that argument in the version of it which has been defended by Julian Lamont (section 1), and to dispel two objections that have been moved against the view that compensation is a principle of desert. (shrink)

Distribution of sufficient health care resources to the maximum number of people in LIC is the central theme of the book. Bangladesh is taken as a representative of low income countries (LIe. In LIC, there is scarcity of health care resources like other resources but the deserving persons are numerous. Therefore, it requires an efficient distribution of resources. Considering 'Inequality to get access to health care' as the basic problem in LIC, John Rawls' principle of fair equality (...) of opportunity is proposed to apply to give people access to health care resources. In this book it is critically analyzed how the principle fails to return a good result in LIC. Instead the principle of maximizing utility is proposed for the purpose. It is argued that maximum number of people can be provided sufficient health care by applying the principle. The principle has also been justified theoretically in concerned low income country and a fruitful result has been achieved from the test. It is claimed that applying principle of utility to provide sufficient health care to the maximum number of people is the most efficient way of health care resources distribution in LIC. (shrink)

The word ‘justice’ is used in several different ways. First, justice is sometimes understood as moral permissibility applied to distributions of benefits and burdens (e.g., income distributions) or social structures (e.g., legal systems). In this sense, justice is distinguished by the kind of entity to which it is applied, rather than a specific kind of moral concern.

I perform an economic and ethical analysis on wealth and income inequality. Economists have performed many statistical studies that reveal a number of, often contradictory, findings in connection with the distribution of wealth and income. Hence, the statistical findings leave us with no better knowledge of the effects that inequality has on economic progress. At the same time, the existing theoretical results have not provided us with a definitive answer concerning the effects of inequality on progress. By (...) gaining knowledge of the nature of inequality, and bringing basic economic principles to bear on the subject, we can come to an understanding of what the causal relationship is between inequality and economic progress. Furthermore, I apply a new theory of ethics – rational egoism – to assess economic inequality. I show that, in the right context, economic inequality is both economically and morally desirable. (shrink)

(Purpose) The purpose of the study is to present Thomas Piketty’s demand view on the issue of growing income and wealth inequalities in highly industrialized countries. It should be indicated here that in his research, Piketty not only explains the mechanism of growing inequalities, but also defines the tools to tackle inequalities (a combination of theoretical and pragmatic views). (Methodology) The aim of the study is achieved through the literature review method as well as the descriptive methods, complemented by (...) comparative analysis. (Results) Piketty’s considerations clearly show that the problem of income and wealth inequalities will not disappear spontaneously, so market automatism will not only not eliminate their causes, but also will not create conditions for a fair distribution of production outcomes between capital and labor. Therefore, reducing the level of inequality requires a return to the concept of the welfare state. (Contribution to the discipline) The conducted analysis may become part of a larger research project showing the relationship between the level of economic development and its impact on the scale of income and wealth inequalities. (shrink)

We argue that the economic evaluation of health care (cost–benefit analysis) should respect individual preferences and should incorporate distributional considerations. Relying on individual preferences does not imply subjective welfarism. We propose a particular non-welfarist approach, based on the concept of equivalent income, and show how it helps to define distributional weights. We illustrate the feasibility of our approach with empirical results from a pilot survey.

Introducing the main theories of distributional justice the book covers utilitarianism and welfare economics, moving on to Rawls's social contract and the Sen/Nussbaum capability approach with a refreshingly readable style. There is a chapter covering the position of mothers and children in theories of justice. The book then studies empirical methods used in analysing the distribution of economic goods, covering Lorenz curves and inequality measures. The concepts of income, wealth and economic goods are comprehensively discussed, with a particular (...) view to their role in theories of justice. This book is an important read for economists and other social scientists, as well as philosophers who want to quantify social and economic justice. (shrink)