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Income Increases (income + increase)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting87%

Selected Abstracts

From Malthus to Modern Growth: Can Epidemics Explain the Three Regimes?*

INTERNATIONAL ECONOMIC REVIEW, Issue 2 2003
Nils-Petter Lagerlöf
We model demographic and economic long-run development in a setting where mortality is endogenous and subject to epidemic shocks. The model replicates the full transition from Malthusian stagnation to modern growth. Consistent with the historical facts, the economy also passes an intermediate post-Malthusian phase where growth rates of both population and per capita income increase simultaneously, as mortality rates fall and become less volatile. The escape from the Malthusian trap is the result of a series of mild epidemic shocks, making it inevitable at some stage, but its timing random. Calibrations show that it can differ by thousands of generations, absent differences in exogenous parameters. [source]

DEPRIVATION, INEQUALITY AND WELFARE,

THE JAPANESE ECONOMIC REVIEW, Issue 2 2009
SATYA R. CHAKRAVARTYArticle first published online: 5 JUN 200
Welfare ranking of income distributions involves a trade-off between equity and efficiency. A person's feeling of deprivation about higher incomes may be of a relative or absolute type. We consider an intermediate notion of deprivation, a convex mix of relative and absolute deprivations. We then look at the problem of welfare ranking of income distributions when welfare increases under a globally equitable redistribution and under an income increase that keeps intermediate deprivation fixed. All deprivation indices can be regarded as inequality indices but the converse is not true. We also provide a numerical illustration of our results. [source]

Agglomeration Economies, Division of Labour and the Urban Land-rent Escalation: A General Equilibrium Analysis of Urbanisation

AUSTRALIAN ECONOMIC PAPERS, Issue 2 2002
Guang-Zhen Sun
A general equilibrium model with increasing return to labour specialisation and economies of transaction agglomeration is developed to address the residential land-rent escalation associated with the urbanisation process, which is in turn endogenised as a result of the evolution of the division of labour. The interplay among the geographical pattern of transactions, trading efficiency and the network size of the division of labour plays a crucial role in our story of urbanisation. We show that: as transaction conditions are improved, the equilibrium level of division of labour and individuals specialisation levels increase; the urban land-rent increases absolutely as well as relative to that in the rural area, the relative per capita lot size of residence in the urban and rural areas decreases; the diversity of occupations in the urban area and the population share of urban residents increase; and the productivity of all goods and per capital real income increase. [source]

Can Trade Help Poor People?

DEVELOPMENT POLICY REVIEW, Issue 3 2007
Market Access in Tanzania, The Role of Trade, Trade Policy
Many development economists prescribe trade as a poverty-reducing formula. But how is this elixir supposed to work? This article contributes to the lively debate on this topic with household evidence from Tanzania , a poor country even within sub-Saharan Africa, the poorest region. About 81% of the poor work in agriculture, which accounts for 88% of the export bundle. The article describes existing poverty and then evaluates the poverty-reduction potential of trade, trade policy and market access. The article extends the analysis by simulating tariff changes and four switching scenarios that swap some poor households into trade-related sectors, such as cash cropping or tourism, to project national poverty reductions of up to 5.6% and household income increases of up to 21.5%. [source]

Precautionary Bidding in Auctions

ECONOMETRICA, Issue 1 2004
Péter Esö
We analyze bidding behavior in auctions when risk-averse buyers bid for a good whose value is risky. We show that when the risk in the valuations increases, DARA bidders will reduce their bids by more than the appropriate increase in the risk premium. Ceteris paribus, buyers will be better off bidding for a more risky object in first price, second price, and English auctions with affiliated common (interdependent) values. This "precautionary bidding" effect arises because the expected marginal utility of income increases with risk, so buyers are reluctant to bid so highly. We also show that precautionary bidding behavior can make DARA bidders prefer bidding in a common values setting to bidding in a private values one when risk-neutral or CARA bidders would be indifferent. Thus the potential for a "winner's curse" can be a blessing for rational DARA bidders. [source]

Tourism demand response by residents of Latin American countries

INTERNATIONAL JOURNAL OF TOURISM RESEARCH, Issue 1 2009
Manuel Vanegas Sr
Abstract A general-to-specific methodology was used to build international tourism demand models by residents from Argentina, Brazil, Colombia and Venezuela to Aruba. We seek to evaluate demand parameters, especially elasticity values, which were disaggregated on a country-to-country basis. We also aim to learn more about the structure and important variables and investigate the process of adjustment. The study has provided new and compelling evidence that, in the short run, residents in developing countries respond rationally and substantially to economic stimulus. The short-run income elasticity ranges from the low of 1.52 for Venezuela to the high of 2.34 for Argentina. These results indicate that Aruba will benefit differently from income increases in these four Latin American countries. The coefficients of the price variable had the expected negative signs, inelastic in the short-run for all countries but significant at the 5% level for Venezuela only. Any deliberate effort to expand tourist arrivals will require a much larger decline in prices than would be the case in the presence of short-run elastic response. The adjustment elasticity, being less than one, suggests that a period of more than one year is required for Latin American residents to fully adjust their tourism decisions in response to demand shocks. This study would seem to provide some useful information about international tourism demand from developing to developing countries that could form a very good and solid basis for analyses and policy action. Copyright © 2008 John Wiley & Sons, Ltd. [source]

Does increase in women's income relative to men's income increase food calorie intake in poor households?

AGRICULTURAL ECONOMICS, Issue 3-4 2010
Evidence from Nigeria
Nigeria; Intrahousehold redistribution of income; Women's income share elasticity; Calorie consumption Abstract This article addresses the important but not widely investigated question of how calorie consumption in African low-income households would respond to intrahousehold redistribution of income from men to women. Specifically, I use survey data on a sample of 480 households from semirural areas of south-western Nigeria to analyze the response of per capita calorie intake to changes in women's share of household income, after controlling for per capita income and demographic characteristics at individual, household, and community levels. I also examine the effect of marginal increases in household income on per capita calorie intake conditional on the income distribution factor: women's share of income. My results suggest that redistributing household income from men to women would neither raise per capita food energy intake nor increase the quality of food calorie source of households in rural south-western Nigeria. I also find that while the income elasticity of quantity of calorie intake is close to zero, income elasticity for quality of calorie intake is substantially positive. I conclude that neither gender-neutral household income increases nor redistribution of household income in favor of women would substantially motivate increased amounts of food energy intake within households in the population under study. However, gender neutral increase in household income is likely to substantially increase the household demand for high-quality food calorie sources. [source]

TIME VARIABILITY IN MARKET RISK AVERSION

THE JOURNAL OF FINANCIAL RESEARCH, Issue 3 2009
Dave Berger
Abstract We adopt realized covariances to estimate the coefficient of risk aversion across portfolios and through time. Our approach yields second moments that are free from measurement error and not influenced by a specified model for expected returns. Supporting the permanent income hypothesis, we find risk aversion responds to consumption-smoothing behavior. As income increases, or as the consumption-to-income ratio falls, relative risk aversion decreases. We also document variation in risk aversion across portfolios: risk aversion is highest for small and value portfolios. [source]