Fair distribution of income is one of the most important economic targets of Fair distribution of income is one of the most important economic targets of countries, economic theorists in relation to the impact of income distribution on economic growth have a positive ef More
Fair distribution of income is one of the most important economic targets of Fair distribution of income is one of the most important economic targets of countries, economic theorists in relation to the impact of income distribution on economic growth have a positive effect on economic growth, and in some other earnings distribution studies have a negative effect on economic growth. Most of the income distribution studies are mainly measured by the Gini coefficient, but the revenue comes after deduction of taxes and forced payments based on income distribution. Hence, the present study investigates the effects of relative re - distribution on economic growth with the use of Iranian economy data between 1359 to 1396 and using the generalized method of moments (GMM). The results of the study show that relative redistribution has a negative and significant effect on economic growth in the studied years. calculating income distribution based on market income and the obtainable income provide conflicting results. According to the results, indirect relationship between economic growth and economic growth is confirmed by relative redistribution index. since taxes as a means of improving income distribution, calculation of chinese coefficient based on income after mandatory payments and taxes can create a more accurate picture of income distribution and its consequences. The results show that planning for fairer distribution of income (after tax deficit) is stimulating economic growth. While on the basis of conventional gini coefficient, income inequality causes economic growth..
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fair distribution of income is one of the most important macroeconomic goals of countries. Two different views are presented in relation to the impact of income inequality on economic growth by economic theorists. Many studies have been done in this regard which in some More
fair distribution of income is one of the most important macroeconomic goals of countries. Two different views are presented in relation to the impact of income inequality on economic growth by economic theorists. Many studies have been done in this regard which in some studies income inequality has positive effect on economic growth and others have negative effect. In most studies, the Gini index is used for income inequality which is based on income before tax deduction and forced payment .Since taxes as a tool to improve the income distribution situation, calculation of Gini coefficient based on income after mandatory payment and taxes can create a more accurate picture of income distribution and its consequences .Due to the effect of income redistribution on income inequality , the present study examines the effect of partial redistribution on economic growth by using the Iranian economy during 1978-2018 and using generalized method of moments ( GMM ) .The results of the study show that the relative redistribution has significant effect on economic growth. Based on the results , indirect relationship between economic growth and economic growth is confirmed by relative redistribution index .The results of this study show that taxes and deferred payment are the driving force of economic growth .While on the basis of conventional GINI coefficient , income inequality causes an increase in economic growth .Therefore , providing a proper measure of income inequality will result in more accurate understanding of income inequality and codification of policy making in order to equal income.
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