This paper investigates the effects on income and its distribution of heterogenous preferences for education expenditures. Models of private and public education are studied and compared. Public education expenditures are determined through majority vote. Equilibria for both models are...

A model of education where the distribution of innate abilities is the source of heterogeneity is investigated. Public and private education models are investigated and compared. Human capital follows a first order Markov process which is shown to converge to a unique stationary distribution in...

When the prices of goods that form a relatively large proportion of the total expenditure of low income households rise in relation to all other goods, the inequality of the real income distribution increases. This paper models the effect on inequality and welfare if, ceteris paribus, Australian...

The aim of this paper is to present a method of examining the effects of macroeconomic variables on the personal distribution of income over time. Given the complexity of the relation between macroeconomic variables and the personal distribution, involving a 'mapping' from just a few variables...

Much of the work that has been carried out since the early 1970s on the properties of alternative inequality measures has been concerned with the relationship between the inequality measures and basic value judgements. In the empirical measurement of inequality and in tax policy simulation...

Economic growth in Less Developed Countries (LDCs) over the last fifty years has often been accompanied by increasing income inequality. To explore this problem, we studied the relationship between income equality and development for forty LDCs using principal component analysis followed by...

This paper investigates a Bayesian approach for examining posterior distributions of several inequality, concentration, tax progressivity and social welfare measures.

We develop a GMM procedure for estimating income distributions from grouped data with unknown group bounds. The approach enables us to obtain standard errors for the estimated parameters and functions of the parameters, such as inequality and poverty measures, and to test the validity of an...

This paper considers the use of alternative welfare metrics in evaluations of income inequality in a multi-period context. Using Norwegian longitudinal income data, it is found, as in many studies, that inequality is lower when each individual’s annual average income is used as welfare metric,...

The (double) Pareto-lognormal is an emerging parametric distribution for income that has a sound underlying generating process, good theoretical properties, and favourable evidence of its fit to data. We extend existing results for this distribution in 3 directions. We derive closed form formula...