This paper has examined the distributional effects of monopoly using quivalent variations. It was found that, whatever the size of the absolute welfare loss due to monopoly, there may be a substantial effect on the distribution of welfare.

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...

This paper considers the question whether it is possible, using information about only the distribution of earnings, to identify some of the labour supply incentive effects of a tax and transfer system.

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...

This paper draws on the work of DiNardo, Fortin and Lemieux (1996) and presents a new method for examining the distribution of the benefits of growth in developing countries. The method allows one to present decompositions in the form of cumulative distribution functions, Lorenz curves and...

Many empirical income distributions are complicated by the existence of a second mode, found in the lower range of incomes. This phenomenon can be generated by the labour supply effects of means-tested transfer payments and the associated high effective marginal tax rates which have strong...

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...