Abstract The paper explains the components of the gross domestic product (GDP) that is used as a measure of the standard of living of a country's economy. First, the current currency exchange rate is discussed and then the advantages and disadvantages of using the GDP as a measure of the standard of living of the economy are outlined. Finally, the paper reveals that the welfare of a nation can hardly be inferred from a measure of national income.
Outline:
How Do We Keep Score
It's Components
Measures of Economic Performance
Advantages and Disadvantages of the GDP
Welfare of a Nation
From the Paper "GDP per capita is used generally as a measure of the standard of living of the economy of each individual country. It records spending on all goods and all services. It can also measure income that is earned (and reported). Those numbers are counted and kept by a national government statistical agency. For example, In the United States uses the BEA, or Bureau of Economic Analysis as our scorekeeper. Australia uses the ABS, or Australian Bureau of Statistics and Germany uses the Statistisches Bundesamt."
This paper compares Keynesian consumption theory and the more modern permanent income hypothesis by presenting the implications of the assumption that consumers are not myopic.
Abstract In this article, the writer studies J. M. Keynes' consumption theory, also known as the absolute income hypothesis, and the permanent income hypothesis, suggested by M. Friedman in the famous paper "A Theory of the Consumption Function". The writer starts with a brief overview of the Keynesian consumption theory and then continues with the explanation of the permanent income hypothesis (PIH). The writer maintains that the Keynesian consumption theory fails to provide a valid explanation of consumer behaviour in the sense that it does not incorporate rational expectations that sensible and generally forward-looking consumers make. The writer concludes that Friedman's permanent income hypothesis, therefore, becomes more plausible when it suggests that consumption tends to be smoothed out throughout time periods allowing for income fluctuations to occur and that consumption responds to permanent changes in permanent income rather than to temporary changes in actual income.
From the Paper "Clearly, the main weakness of the Keynes' theory is that it assumes that individuals are short-sighted because they observe their actual income only and ignore the potential future income (or lack of it). A more reasonable approach is to presume that consumers' behaviour is likely to be intelligent and forward-looking. In this case, current consumption decisions become highly dependent on the expectations about the future, i.e. future labour income, real interest rates or taxes. The model which incorporates these expectations is the permanent income hypothesis.
"The central idea behind the PIH model is that individuals form estimates of their ability to consume in the long run and then set current consumption to the appropriate fraction of that estimate in order to smooth out their consumption over periods even when their income may be subject to fluctuations."
Abstract This paper discusses the increasing inequality in the distribution of income in the United States. According to the writer, this subject has been a subject of considerable public concern, political attention, and academic research. Income inequality is a measure of how equally the income pie is divided among all members of society. The paper details ways to reduce the gap between the rich and the poor in the U.S.A through radical changes with minimum wages, taxation methods and welfare programs.
Outline:
Summary Introduction
Unequal Income Distribution in USA
Conclusion
From the Paper "In recent years, increasing inequality in the distribution of income has been a subject of considerable public concern, political attention, and academic research. Income inequality is a measure of how equally the income pie is divided among all members of society. The relative income, or gauge, can be defined how well the poor are doing economically compared to the rich. In other words inequality is a measure of how equally the income pie is divided among all members of society. "
Abstract This paper compares statistics from the United States and Canada in terms of income disparity and age, showing how the elderly earn less and may be retired so that they are dependent on pensions and government payments to live,. The paper analyzes how the retirement system in Canada is better shaped to maintain a level for the elderly than is the Social Security system in the United States.
From the Paper "Income inequality has been examined from a number of perspectives, noting the wide disparity between the income of the richest and the poorest, between people in different jobs, between genders, between different racial groups, and on the basis of age. Many such inequalities are evidence of unfair distribution, while that for age suggests certain characteristics of working life as the cause. An examination of the age disparities in the United States and Canada show why this is so and also suggest some differences between the two countries. Income disparities exist within age groups and have more to do with unfair distribution caused by such other factors as race and gender, along with expected differences on the basis of education."
Abstract This paper looks at a number of economic indicators in order to compare the growth and income distribution of Nigeria since the 1960s with that of the United States for the same time period.
From the Paper "Between fiscal year (FY) 1959 and 1967, GDP grew by 6.0 percent annually. According to statistics, GDP shrank at an annual rate of 1.1 percent between FY 1967 and FY 1970. However, this does not take into account political upheavals such as the secession of the Eastern Region in 1968 or the war that ended in 1970. It is thus highly likely that the decline in net domestic production is understated in the statistics, since annual measures of GDP do not reflect wartime capital destruction."
Abstract The paper provides an overview of the extent of poverty in underdeveloped nations by examining the per capitaincome in terms of the US dollar. The paper identifies poverty's root cause of colonization and argues that to alleviate poverty, developed countries should grant better market access as well step up their foreign aid. The paper argues further that these poor nations need to focus more on neo-liberal policies.
Outline:
Introduction
World Disparities
Causes of Poverty
To Alleviate World Poverty
From the Paper "This essay first explores the extent of disparity that exists around the world, which smacks of the extent of poverty. There is no doubt that most of the countries follow democratic system and hence assumed the role of welfare state. As a corollary, alleviation of poverty has become central to their economic policy making. However, the progress made in this connection is far from satisfactory, as evident from the disparities that still persist in the world welfare. As the Joan Robinson once said, 'Poverty anywhere is a threat to prosperity everywhere'. Thus, attacking poverty calls for a concentrated but unified approach by the developed countries, which need to support the development of the poor nations."
Identifies causal factors for the gap in health care access for lower-income Americans and visible minorities and the more affluent members of America's majority.
Abstract As the American population continues to become more diverse racially, members of visible minority groups within the population become more prominent. Simultaneously, with the increase in diversity, income distribution in the American economy has become more distorted. While economic growth in the United States has surged over the past decade, the income gap has widened; not only between the richest and poorest Americans, but also between moderate-income and low-income Americans. Members of visible minorities in the population tend to be represented disproportionately in the low-income and poverty classifications in the United States. While there is an abundance of implications of this state of affairs, one of the more crucial ones is access to health care. Individual and household financial capacity, the scarcity of employer-paid health insurance among small businesses, cultural differences based in social psychology and other factors frequently act as impediments to health care access for low-income individuals and households among visible minority population groups in the contemporary United States. This problem and these issues are investigated in this study. The study identifies causal factors for the gap in health care access between lower-income Americans and members of visible minorities in the United States, on the one hand, and more affluent Americans and members of the majority segment of the population, on the other hand. The initial chapter of this study delineates the problem investigated. Specific research questions are formulated and stated to provide greater focus for the investigation.
Social psychological theory and applied social psychology literature are reviewed in the second chapter. Literature relevant to the functioning of low-income and visible minority population groups in the United States within a social psychological context are reviewed in the third chapter. The fourth chapter is devoted to a review of literature relevant to both the health care system in the United States and the experiences of low-income and visible minority population groups in relation to health care access and health care delivery in the United States. An assessment of the problem investigated, performed within the structure of the research questions, is presented in the final (fifth) chapter. Conclusions drawn from the study findings are stated and recommendations for further research are made. The summary conclusions reached through the conduct of this study relate both to health care access and health care utilization by low-income persons and members of visible minorities. With respect to health care access, the summary conclusion reached is that a universal system of health care entitlement is required in the United States. In relation to health care utilization by low-income persons and members of visible minorities, the summary conclusion reached is that extensive education is required for both low-income persons and members of visible minorities, on the one hand, and health care providers, on the other hand. Low-income persons and members of visible minorities require education on the benefits and function of health care services, while health care providers require education in the social mores of the diverse populations they must serve.
Table of Contents:
Introduction
Problem Delineation
Background on the Problem
Statement of the Problem
Research Questions
Review of Relevant Social Psychology Theory and Literature
Introduction
Sociological Theory and Health Care
The Welfare State
Accessing Contemporary Health Care
Role of Ethics in Accessing Health Care
Alternative Health Care Delivery Systems
Chapter Conclusions
Social Functioning of Low-Income and Visible Minority Population Groups
Introduction
HIV/AIDS Related Behavior
Initiatives to Improve Health Care
Access and Behaviors
The American Health Care System and the Experiences of Low-Income and Visible Minority Groups
Introduction
The American Health Care System
Analysis of Health Care Delivery Systems
Care Quality
Alternative Approaches to Health Care
Bioethical Issues
Problems of Accessibility
Initiatives to Improve Minority Access
Chapter Conclusions
Assessment of the Problem Discussion, Recommendations for Further Research
Appendices
Annotated Bibliography
From the Paper "Social Cognitive Theory [self-efficacy] emphasizes the role of expectancies, self-efficacy, peer normative influences, and social competency skills as key components affecting adolescents? behaviors (DiClemente, Lodico, Grinstead, Harper, Rickman, Evans, & Coates, 1996). The applicability of models based on social psychological principles for understanding African-Americans? decision-making and sexual behavior has been questioned because most such models tend to be individually-focused and do not take into account the social context in which the behavior is embedded (Cochran & Mays, 1993). Social cognitive theory, however, explicitly integrates behavioral, cognitive, and environmental factors as reciprocally interactive. Thus, given the hypothesized multi-factorial nature of sexual decision making and the potential impact of the high-risk social environment of the study population, approaches based on social cognitive theory are thought to be particularly relevant for understanding the myriad factors that may affect African-Americans? sexual behavior."
This paper discusses income disparities in Latin America: The history, main causes, the different countries, high-income disparities, ethnicity and gender, and possible solutions.
Abstract This paper states that, although inequality and high levels of income disparity represent major challenges confronting economists and leaders in many parts of the world, the problem is particularly severe in the Latin American countries. The author believes that the root of this phenomenon lies in the region's colonial history and the exploitation of the indigenous population as slave labor for agriculture and tapping the mines. The paper concludes that these stubborn patterns of inequality can be overcome if determined efforts are made to open political and social policies to all and to provide access by the poorer sections to social services. Footnotes.
Table of Contents
Income Disparities in Latin America
Measuring Inequality: Some Recent Studies
Latin America: How Unequal?
Income Disparity in Latin America: Getting Worse?
Is Poverty and Income Disparity Related?
Historical Roots of Inequality in Latin America
Comparison with Colonization of North America
Persisting Patterns of Inequality
Social, Economic and Political Changes in the 20th Century
Roles of Race, Ethnicity and Gender in Income Disparities
Racial Identification
Ethnic Identification
Identity Formation and Discrimination
Assets of Households
Access to Services
Average Incomes What do the Race and Gender-Related Income Statistics Mean?
The Consequences of Inequality
Considered Unfair
Results in Greater Poverty
Affects Economic Growth
Current Backlash
Solutions for Reducing the Inequality in Latin America
More Open Political and Social Institutions
More Equitable Economic Institutions and Policies
Conclusion
From the Paper "Poverty and income disparity are not the same concepts. Poverty may decline in a country or region where income disparity is increasing. However, experience has shown that such a situation occurs rarely and inequality and poverty are closely related. This is because in a growing economy with stable levels of inequality, poverty invariably falls. As a result the Latin American region showed significant reduction in poverty levels in the 1970s, when its economies were growing with a corresponding drop in inequality. On the other hand, the 1980s saw a fall in incomes and more unequal income distribution?resulting in accelerated increase in poverty."
Abstract This paper explains that sociologists and politicians have become extremely worried about the growth in international and national income disparity especially in developing countries, which is considered to be the cause of political strife. The author stresses that calculating the level of income disparity in developed or under-developed societies is not easy; two different studies of one particular country, at the exact same time, can come to two different conclusions. The paper proposes a comparative analysis of the various structures and theories of income disparity measurements being utilized by the third world countries, which are comprehensive enough to accurately evaluate income disparities with all independent variable, such as color, gender, rural/urban, economical system and occupation. Tables and graphs.
Table of Contents
Introduction
Research Questions
General Questions
Specific Questions
Background of the Study
The Histories Context of Income Disparity:
Literature Review
A Brief Overview of the Income Disparity Measurement Methods Being Used
Critical Analysis of these Measurement Methods
Problems with the Use of these Methods within Countries
Ideas about the Gaps that Exist
What is Wrong with the Present Methods being Used?
Theoretical Framework
Summary of the Theoretical Framework
Hypothesis
General Questions
Specific Questions
Research Design
Operationalization Variables
Data Collected
Analysis Plan
Causal Diagram (Ordinary Least Squares Regression)
Conclusion
Table: World Population and Total poverty
Table: Education Spending in relation to the Total GDP and Total Expenditure of the Governments
Table: The Percentage of Income Sharing between the Richest and the Poorest
Table: Gender Related Income Distribution
Table: Occupation and Unemployment Rates
From the Paper "A substitute structure of measurement frequently employed by the third world has been the use of per capita GNP facts and figures (GNP/c), however, the consideration of purchasing power parity (PPP) has been made and changes have been made accordingly. The changes made in this system compare the local prices of products, merchandise and services of that particular country with the international prices of the same commodities. By utilizing the identical comparative prices for each and every product and services, the researchers evaluated the income measurements that had been changed for purchasing power parity (PPP). The results of the measurements model that considers the purchasing power parity (PPP) and changes the GNP/c accordingly is different from the model that disregards the changes."
Abstract America as the land of opportunity is a concept that has been around since the country's inception. Americans should have the economic opportunity that is associated with this general concept. As such, the topic of income inequality is of great importance. This paper explores the effects of international trade, immigration, and unionism on income inequality.
Outline:
Abstract
Introduction
Income Inequality
The Effects of International Trade on Income Inequality
The Effects of Immigration on Income Inequality
The Effects of the Decline of Unionism on Income Inequality
Is Income Inequality Getting a Bad Rap?
Conclusion
From the Paper "Rising inequality and decreasing poverty could very well be a consistent feature of the New Economy. Rapid technological advancements have not only created great fortunes for a select few, but have also substantially improved the wages and quality of life for people at the lower end of the economic ladder. A better-educated society has also led to less poverty, while still increasing the income inequality gap, since those with college degrees have a wider spread of incomes. Although income inequality is disturbing, it is far better than poverty. More income inequality, with a faster growing economy, and less poverty is far more desirable than an economy with equal distribution of income but a high rate of poverty. This is not the first time in history that this blend of greater income inequality and reduced poverty has occurred."
Abstract This paper establishes a model to elucidate how low-income heads-of-households (LIHOH) decide to purchase a home. The paper explains that after the decision is made, the model will predict the outcome for the homeowners when certain variables are changed, such as interest rates and income. The paper then establishes a hypothesis, proposes a way to prove the hypothesis using social science work done in previous studies, and then examines the outcome. Next, the paper examines what additional evidence might be collected in new quantitative studies to bolster or challenge the hypothesis. This paper also argues that the boom in housing ownership in the United States during the 1990s was largely driven by lower-cost loans, rather than changes in consumer preferences amongst lower-income heads of household. The paper points out that recent interest rate rises and changes in the job prospects of low-income earners in the US should predict a lower rate of house ownership in the future.
Outline:
Introduction
Hypothesis
Methodology
Income Expectations of Income Continuation
Previous Home Ownership
Down Payment
Interest Rates
ARM's (Adjustable Rate Mortgages)
Reverse Mortgages
Increasing Housing Prices
Non-Financial Home-Buying Incentives
Completing the Model's Assumptions
Results Analysis
Critiques of this Model
Need for Further Study
Conclusion
From the Paper "Heads of household in poor households--defined as up to two times the official US poverty level of $16,000 per household (2004) in the US, or $32,000 (DeNavas-Wait). The rate of home ownership has increased in this segment of the US population during the 1990's (Belsky E. S. and Duda 1-45). Although many LIHOH figures are clouded by the mix between Hispanic, Black and other lower-income classifications, the trend towards higher homeownership in the 1990's is clear. According to the Federal Reserve Survey of Consumer Finances, more than 55 percent of lower-income households held debt in 2004, up from 45% in 1989."
Abstract This paper discusses the income tax controversy that exists in the State of Florida. It explores the subject of Florida adopting a personal income tax and examines several economic implications regarding the social costs and benefits of Florida's legislative and fiscal policies. The paper discusses the options for Florida in terms of whether they should adopt a personal income tax. The paper contains tables.
Table of Contents:
Introduction
In Florida...
A Balanced Tax System
Income Tax Considerations
Perks Accompany the Lack of a Personal Income Tax
The Tax Revolt
Chronology of EIG Tax Elimination
Income Tax Proponents, Opponents and Components
No Other Answer...
From the Paper "In response to the 2006 Florida Government Accountability Act, consistent with Florida TaxWatch, Florida state legislatures imposed substantive and procedural modifications to reportedly increase effectiveness, efficiency, and accountability among agencies, boards, and commissions. To produce good decisions for Florida taxpayers, this enhanced legislative understanding of agency needs and activities reportedly proved to be a valuable byproduct of the act. Florida Tax Watch warns that good intentions, such as those which led to the 1994 Ac passing, must be enhanced by the link of a sustained commitment of time, interest, and consequential actions on the part of legislators. ("Making Florida's Latest Government", 2006)"
Abstract This paper examines how most social workers, politicians and those of the general public who support the welfare state do so in part because they believe welfare programs help to reduce the rate of poverty. It looks at how a growing number of critics assert that such programs in fact fail to decrease poverty, because too small a share of transfers actually reaches the poor, or because such programs create a welfare/poverty trap, or because they weaken the economy. It proposes a study to assess the effects of social-welfare policy extensiveness on poverty rates.
Outline
Discussion
Pros of Raising Income Taxes to Redistribute Income to the Poor
Cons of Lowering Taxes and Reducing the Amount Available for Income Redistribution.
Pros of Reducing Income Taxes
Cons of Reducing Income Taxes
Proposals
Ways of Funding Social-Insurance (Welfare) Programs
Conclusion
From the Paper "Reducing the amount of transfer payments ultimately will increase levels of both poverty and the maladies that are associated with it. Infant and child mortality, increased crime, lack of participation in society in general, and increased medical expenses born ultimately by society can all be the results of decrease social spending (Center on Budget and Policy Priorities web site). To quote a study by the Center on Budget and Policy Priorities: ?Social insurance programs moved 1.4 million children out of poverty. Federal taxes, including the Earned Income Tax Credit, (EITC), lifted another one million children out of poverty. It is striking that taxes were nearly as effective as social insurance programs in moving children out of poverty because taxes alone would be expected to increase rather than reduce poverty."
Abstract This paper examines the main hypothesis of whether increases in disposable income, cause an increase in domestic travel, and the sub-hypothesis of whether domestic travel is a normal or luxury good. The paper explains that the main aim is to determine the true nature of the relationship between disposable income and domestic travel. The paper further explores the effect of disposable income on domestic travel. In conclusion, the paper shows that a complete model of domestic travel entails looking at all determinants of travel as a supposed explanatory variable before the relationship between personal disposable income and domestic travel can be analyzed and this is necessary so that the relationship coefficients are unbiased.
Outline:
Literature Survey
Theory and Hypothesis: What is the Effect of Disposable Income on Domestic Travel
From the Paper "Research that has centered on domestic travel, began as early as the 1960's, especially in wake of the fact that in many developed countries citizens were spending excessively on travel. Empirical studies by Gray found that disposable income was a major determinant of travel. Gray's analysis was an econometric model that included explanatory variables such as the foreign exchange rate, fare payments abroad, and travel spending by local residents. Gray's work also included another element that was absent in other papers, that is, Gray found that the prices of goods and services while traveling were an important determinant of travel. This particular model is important to the testing of the relevant hypotheses since, it gives a clear picture as to what the complete model of domestic travel should entail as explanatory variables. It is therefore less likely to get a biased determinant if all the necessary independent variables are included in the model; Gray's research paper dictates what these variables should be."
Abstract This paper investigates whether and how the federal income tax receipts change given the overall tax rate for individual income taxes. The paper also investigates whether the tax receipts exhibit a diminishing return as marginal tax rates increase. The paper concludes that there exists a meaningful relationship between the marginal income tax rate and the marginal income tax receipts.
Outline
Introduction
Model
Model Results
Initial Model
Alternative Model
Alternate Model End Notes
Initial and Alternative Model Results
Data Mining
Data Mining Results
Conclusion
Appendix A: Figures
Appendix B: Data Sources
From the Paper "Now, disregarding all the statistical minutia that may or may not be relevant the author will make the following observations regarding the alternate model. This model is depicting the predictive power of the variance of the marginal individual income tax rates among all five income quintiles to the income tax receipts at the federal level. It is apparent from the model that nearly a quarter of the variation in the marginal tax receipts can be predicted through the marginal tax rate, ceteris paribus."
