Shoji Katagiri
The Role of ICT for Income Inequality The Model and the Simulations
436 - 447
2018
12
3
International Journal of Economics and Management Engineering
https://publications.waset.org/pdf/10008794
https://publications.waset.org/vol/135
World Academy of Science, Engineering and Technology
This paper is to clarify the relationship between ICT
and income inequality. To do so, we develop the general equilibrium
model with ICT investment, obtain the equilibrium solutions, and then
simulate the model with these solutions for some OECD countries.
As a result, generally, during the corresponding periods we confirm
that the relationship between ICT investment and income inequality
is positive. In this mode, the increment of the ratio of ICT investment
to the aggregated investment in stock enhances the capital’s share of
income, and finally leads to income inequality such as the increase
of the share of the top decile income. Although we confirm the
positive relationship between ICT investment and income inequality,
the upward trend for that relationship depends on the values of
parameters for the making use of the simulations and these parameters
are not deterministic in the magnitudes on the calculated results for
the simulations.
Open Science Index 135, 2018