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Investigating the Effect of Government Budget Expenditures on Income Distribution in Urban Areas of Iranian Provinces: A Quantile Panel Approach
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Saeed Jamalshargh *   |
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Abstract: (174 Views) |
The purpose of this study is to investigate the factors affecting income distribution in urban areas of 30 provinces of Iran during the period 2006-2017. To calculate the income distribution index, three indicators, the Gini coefficient, the generalized Gini coefficient with an emphasis on the role of the poor, and the generalized Gini coefficient with an emphasis on the role of the rich, were used. Also, two models were considered to investigate the factors affecting income distribution. In the econometric model of this study, along with other variables, the effect of the ratio of direct and indirect taxes to tax revenues and the ratio of current and development expenditures to GDP on income distribution was examined. The distinctive feature of the above work, along with a comprehensive study of the factors affecting income distribution, is the use of various income distribution indicators that help policymakers adjust income distribution policies based on their goals and priorities towards the poor and the rich.
When improving the situation of the poor is the concern of the economic policymaker, increasing tax rates, increasing direct taxes, and increasing per capita income will improve income distribution. But increasing government spending does not help reduce inequality among the poor in urban areas.
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| Keywords: Income Distribution, Iran's Provinces, Tax, Government Expenditure, financial development index, Quantile regression |
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Full-Text [PDF 621 kb]
(41 Downloads)
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Type of Study: Research |
Subject:
Special
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