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Investigation of the Impact of Macroeconomic Variables on Income (Expenditure) Gap
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Seifallah Eslami *   |
| Department of Economic Affairs |
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Abstract: (11404 Views) |
| Generally in all countries, governments must intervene in some areas inevitably, regardless of sovereignty and tenure. Some of these areas are social welfare and particularly expanding protection of vulnerable groups for reducing income inequality and improving social income distribution. In this paper, the impact of some of the macroeconomic variables on income inequality has been studied using co Integration approach during years of 1349-91. The results show that achieving fifth development plan goals such as 8 percent economic growth rate and Gini coefficient of 35% and other income distribution indicators is not possible simultaneously. Thus in setting sixth economic plan, it should be considered that achieving high growth as well as low Gini coefficient will be difficult. We show that rising per capita GDP and inflation increases income gap and rising per capita subsidy and employment and per capita wealth tax, decreases income gap. |
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| Keywords: Subsidies, Income Gap, Gap between Top and Bottom Income Groups, Economic Growth Rate, Inflation Rate, Gini Index. |
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Full-Text [PDF 386 kb]
(2625 Downloads)
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Type of Study: Applicable |
Subject:
Special
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