This study measures the impact of changes in the income determinants on inequality in the 1990 to 2003 period, in order to answer the question of why income distribution as a whole has not changed. The methodology utilized are micro-simulations of income distribution, which is the most...

In the Latin American context, Chile has the highest level of per capita income and the human development index, though the distribution of income is quite unequal. Unlike Uruguay, Chile has one of the more unequal income distributions of the region. In 2003, Chile had Gini Coefficient of 8.5...

In the present paper an analysis of the neo-classical optimization model with linear constraints is proposed. By introducing the dual problem it is shown that the solution to the maximization problem is also a solution to the minimization problem. The purely theoretical model proposes a...

Of the world’s 6.7 billion people (as of 2008), 1.3 billion lived on less than $1.25 Purchasing Power Parity dollars per person per day and another 1.7 billion lived on between $1.25 and $2.50 PPP dollars (Chen and Ravallion, 2012). The scourge of absolute economic misery among billions of the...

We study work effort with its various determinants such as the educational level of the worker, the minimum or start-up salary as well as the initial endowment of the worker. By means of optimization we find that optimal work effort depends directly on the initial income available to the worker,...

According to Lall (1997), the FDI are strongly interconnected with a series of variables, such as: economic conditions (markets, natural resources, competitiveness), host country policies (macro policies, private sector, trade and industry, FDI policies), as well as MNE strategy (risk...

This paper addresses the intra-regional trade of the countries of the Gulf Cooperation Council (GCC), namely, the United Arab Emirates, Bahrain, Saudi Arabia, Oman, Qatar and Kuwait. We have found that the intra-regional trade is still at a modest level, where the trade intensity index showed...

International competitiveness is often regarded as crucial for the attainment of gains from trade, which may lead policy makers to subsidize exports. This view is based on confusion between the concepts of competitive and comparative advantage. The paper argues that when comparative advantage is...

International competitiveness is often regarded as crucial for the attainment of gains from trade, which may lead policy makers to subsidize exports. This view is based on confusion between the concepts of competitive and comparative advantage. The paper argues that when comparative advantage is...

In this paper we analyze the role played by Market access to explain income disparities among Japanese Prefectures for different periods of time. The results of the estimations suggest that 1) Market access plays an important role in the explanation of income disparities in Japan, 2) the effect...