Income inequality
Ali Sarkhosh Sara; Khadije Nasrollahi; Karim Azarbaiejani; Rasoul Bakhsi Dastjerdi
Abstract
Reduction of inequality and social justice by balancing the distribution of income and wealth is one of the concerns of economic policy makers and has been underlined by the constitution law in Iran. In the meantime, the explanation of the relationship between inequality and the factors affecting it ...
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Reduction of inequality and social justice by balancing the distribution of income and wealth is one of the concerns of economic policy makers and has been underlined by the constitution law in Iran. In the meantime, the explanation of the relationship between inequality and the factors affecting it has been a challenging area of economic debate in recent decades, and despite extensive research in this area, there are still many ambiguous issues in this regard. In this regard, in recent years, a new hypothesis has been presented by the French economist Thomas Piketty. In his analysis, Piketty's main factor of inequality is the gap between the rate of return on capital and the economic growth rate (r-g). But, despite offering logical explanations consistent with changes in the patterns of inequality, no empirical test has been done for the scientific-theoretical chain. Therefore, the question arises as to how much Piketty's hypothesis is empirically convincing and capable of explaining the rise of inequality for different countries? For this purpose, this paper, using the Structural Vector Autoregressive pattern (SVAR), analyzes the factors affecting income inequality in Iran within the framework of Thomas Piketty's perspective during the period of 1973-2016. The results of this study showed that the increase of gap (r-g) has no positive and significant relationship with the increase of inequality and share of capital from national income in Iran and there is no evidence to confirm Piketty's hypothesis in Iran.
International Commerce
khadijeh nasrollahi; karim azarbaiejani; mohammadreza zeinolabedini
Volume 6, Issue 24 , September 2016, , Pages 39-54
Abstract
The aim of this study has been to evaluate the club convergence between Iran and its trading partners over the period 1978-2013. For this purpose, this paper has used log(t) test with the limited dependent variable. Then,by using a sequential dependent variable model, factors affecting the formation ...
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The aim of this study has been to evaluate the club convergence between Iran and its trading partners over the period 1978-2013. For this purpose, this paper has used log(t) test with the limited dependent variable. Then,by using a sequential dependent variable model, factors affecting the formation of these club has been investigated and identified. According to estimated model in the form of panel data, a convergence club income between Iran and some of its trading partners has been confirmed. The results show that there are the potential for income convergence of Iran and Belize, Algeria, Egypt, Fiji, Guatemala, Honduras, India, Kiribati, Morocco, Nicaragua, Swaziland, Thailand, Tonga, Tunisia and Vietnam countries and they can form an effective economic block, and strength their internal relationships in order to achieve higher economic growth and faster convergence.
