Search results for: income distribution

Authors: Marjan Majdi, MohammadAli Moradi, Elham Samarikhalaj

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Income distribution is one of the most topics in macro economic theories. There are many categories in economy such as income distribution that have the most influenced by economic policies. Human capital has an impact on economic growth and it has significant effect on income distributions. The results of this study confirm that the effects of oil revenue and human capital on income distribution are negative and significant but the value of the estimated coefficient is too small in a real sample in period time (1969-2006).

Keywords: gini coefficient, human capital, income distribution, oil revenue

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Authors: Kanyarat Bussaban, Siriporn Poolsuwan

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This study is conducted with the objective to prove how the distorted distribution of welfare affects the quality of school-age children lives differently in the case of an urban community in Bangkok. 334 samples are households from Suan Oi and Ratchapatubtim communities. The study of sample communities found the difference between two community areas that are close. The people of Suan Oi community are economically better off people than the people of the Ratchapatubtim community. They share the benefits of using most services except the welfare of a child’s education. The resulting analysis of the variability in quality of life of the school age children indicate that heads of the households are women looking for quality of life benefits when the compulsory school age is less. A study of the two communities suggests that the inequality in income distribution currently affects the quality of life of school-age children.

Keywords: inequality, income distribution, quality of school-age children lives, welfare state

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Authors: Erdal Eroğlu, Özhan Çetinkaya

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The purpose of this paper is to show how state plays a regulatory role in the relations of distribution by analyzing tax and expenditure in Turkey. This paper has two main arguments. First, state intervenes in economic and social life via budget policies and steers the relations of distribution within the scope of the reproduction of the capital accumulation and legitimacy. Secondly, a great amount of public expenditure benefits capital owners while state gains its tax income mainly from low and middle income groups.

Keywords: distribution, public expenditure, state budget, taxes

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Authors: Vikram Singh

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This paper aims to take into account carbon tax or cap-and-trade legislation to manage Delhi carbon emissions after a post-Kyoto treaty. This report estimated the influence of the carbon taxes or rebate/compensation cost at the household level. Here, the three possible scenarios will help to comprehend the difference between a straightforward compensation/rebate, and two clearly denoting progressive formula. The straightforward compensation is basically minimizing the regressive applications that will bears on cost. On the other hand, both the progressive formula will generate extra revenue, which will help for feasibility of more efficient, vehicles, appliances and buildings in the low-income household. For the hypothetical case of carbon price $40/tonne, low-income household for both urban and rural region could experience price burden up to 5% and 9% on their income as compared to 3% and 7% for high-income household respectively. The survey report also shown that carbon emission due low-income household are primarily by the substantive requirement like housing and transportation whereas almost 40% emission due to high-income household are by luxurious and non-essential items. The equal distribution of revenue cum incentives will not completely overcome high-income household’s investment in inessential items. However, it will merely help in investing their income in energy efficient and less carbon intensive items. Therefore, the rebate distribution on per capita basis instead on per households will benefit more especially large families at low-income group.

Keywords: household emission, carbon credit, carbon intensity, green house gas emission, carbon generation based insentives

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Authors: Taisier A. Zoubi, Feras Salama, Mahmud Hossain, Yass A. Alkafaji

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The purpose of this study is to examine the equity pricing of other comprehensive income when earnings are disaggregated into several components. Our findings indicate that other comprehensive income can better explain variation in stock returns when net income is reported in a disaggregated form. Additionally, we found that disaggregating both net income and other comprehensive income can explain more of the variation in the stock returns than the two summary components of comprehensive income. Our results survive a series of robustness checks.

Keywords: market valuation, other comprehensive income, value-relevance, incremental information content

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Authors: Rahime Hülya Öztürk

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Along with the development of globalization, the relationship between economic, politic and commercial behaviors became unlimited. The liberalization of capital has many advantages for countries, but it also has some disadvantages. In these disadvantages the most important one is corruption. Especially in Developing Countries and Underdeveloped countries, corruption is very extensive. Corruption causes inefficient use of resources and promotes income inequality. Especially in the transition period of economies corruption increases and sometimes governments don’t interfere. To fight against corruption domestic and international measures are taken. Corruption is an economic problem, but it also has social and moral effects. The aim of this study is to define the relationship between corruption and income in Independent Turkish State. In the first part of the study, the concept of corruption is examined. In the second part of the study, information about The Independent Turkish Republic is given. In the third part of the study, country’s relationship between corruption and income is analyzed with panel data analysis.

Keywords: corruption, income, independent Turkish Republic, distribution of income

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Authors: Yakubu Abdulai, Kenichi Matsui

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The agricultural industry has faced a variety of challenges in meeting the expanding income demand of the rural population. As a result, rural households must diversify their income sources to meet their income demand. Although income diversification strategies help rural households, it contributes to total household income, and the socio-demographic determinants are not known in the Upper East Region of Ghana. For these reasons, the purpose of this study was to determine the contribution of income diversification strategies to household income and the socio-demographic factors influencing it. We conducted a questionnaire survey among 360 rural households in the Upper East Region of Ghana. We asked about their socio-demographic information, their choice of income diversification strategies, and their remittances through rural-city migration. The questionnaire survey findings demonstrate that the main livelihood income source contributes 22%, and on-farm income diversification contributes the most to household total income (47%), followed by non-farm diversification income (16%) and off-farm diversification income (15%). Calculations from the income diversity index showed that the average income diversification strategy was 0.5 out of 1. The calculation of the income dependence index also showed that the average dependent on a particular source of income was 0.2 out of 1. All the respondents said household members temporarily migrate to contribute to household income through remittances. The results further reveal that their choice of income diversification is influenced by their age, educational background, experience, and farm size. The paper recommends the promotion of rural development policies that increase income-generating activities and educate rural households on how to increase returns from their investment.

Keywords: income diversification, poverty alleviation, rural households, upper east region

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Authors: Hannah F. Opayinka, Adedayo A. Adepoju

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This study is an extension of a prior study on the modification of the existing m-out-of-n (moon) bootstrap method for heavy-tailed distributions in which modified m-out-of-n (mmoon) was proposed as an alternative method to the existing moon technique. In this study, both moon and mmoon techniques were applied to two real income datasets which followed Lognormal and Pareto distributions respectively with finite variances. The performances of these two techniques were compared using Standard Error (SE) and Root Mean Square Error (RMSE). The findings showed that mmoon outperformed moon bootstrap in terms of smaller SEs and RMSEs for all the sample sizes considered in the two datasets.

Keywords: Bootstrap, income data, lognormal distribution, Pareto distribution

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Authors: Wenfen Bi, Zeng Lin

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As a developing country, China is badly in need of capital and talents to develop the socialist country with Chinese characteristics. However, a large proportion of high income people with know-how technique, wealth and management experience have immigrated or plan to immigrate to other countries. Of course, this phenomenon has attracted the attention from both the government and researchers. One explanation might be that these high-income people lack confidence in China’s social development. Based on the data on W city’s comprehensive social situation surveyed by center for the social survey research of Wuhan university (CSSR) in 2014, this paper employed the structural equation model (SEM) to evaluate whether personal income affects social confidence, via the mediating effect of the sense of social equity (sense of right equity and sense of distributive equity). Bootstrap mediation analysis revealed that after controlling Demographic variables, personal income had a significant negative influence on sense of right equity and in turn, sense of rights equity can significantly positively predict social confidence. While personal income had no significant effect on sense of distributive equity, and sense of distributive equity did not significantly affect macro social confidence. Also, the direct effects of personal income on social confidence became not significant. These findings revealed the inner mechanism of the relationship between the personal income and social confidence in contemporary China, which was caused by mediating effect of sense of rights equity. That is, the higher the personal income, the lower the sense of rights equity, the lower the social confidence. Thus, the boost of the social confidence, especially for the rich, does not only depend on the equitable distribution of material wealth, but also on the right equity and making people feel rights equally in common life.

Keywords: personal income, sense of right equity, sense of social equity, social confidence

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Authors: K. Lekshmi

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Land becomes a predominant constituent of transitional justice paradigm subsequent to the apartheid inspired land grabs and conflict induced forceful evictions in South Africa effecting land encroachment, expropriation, and alienation. In this pretext, post-Apartheid regime initiated land reconciliation measures which presume to overcome the politically appropriated historical injustices in conjunction with reconstructing transitional justice. As land grabs became one of the quintessential repercussions followed by ethnic cleansing in South Africa, it is prominent to study how land reconciliation becomes necessary in imparting transitional justice to the victims. The study also looks into the nature of developmental pattern after re- territorialization process in a post-conflict country like South Africa and, tries to look how re-territorialization process construed the functional distribution of income vis-a-vis income inequality in particular. Further the paper attempts to study how far land distribution and equal access as part of the land reconciliation process juxtaposed the principle of restitution. Research methodology applied is empirical followed by analytical research.

Keywords: development, land reconciliation, transitional justice, income inequality and displacement, re-territorialization

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Authors: Ranajoy Bhattcharyya

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We estimate international product cycles as shifting product spaces by using 1976 to 2010 UN Comtrade data on all differentiated tradable products in all countries. We use a product space approach to identify the representative product baskets of high-, middle and low-income countries and then use these baskets to identify the patterns of change in comparative advantage of countries over time. We find evidence of a product cycle in two senses: First, high-, middle- and low-income countries differ in comparative advantage, and high-income products migrate to the middle-income basket. A similar pattern is observed for middle- and low-income countries. Our estimation of the lag shows that middle-income countries tend to quickly take up the products of high-income countries, but low-income countries take a longer time absorbing these products. Thus, the gap between low- and middle-income countries is considerably higher than that between middle- and high-income nations.

Keywords: product cycle, comparative advantage, representative product basket, ex-post data

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Authors: Shoji Katagiri

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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.

Keywords: ICT, inequality, capital accumulation, technology

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Authors: Pouneh Soleimaninejadian, Chengyu Yang

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In this paper, we use data on Household Income and Expenditure survey of Statistics Centre of Iran, conducted from 2005-2014, to calculate several inequality measures and to estimate the effects of Iran’s targeted subsidy reform act on consumption and income inequality. We first calculate Gini coefficients for income and consumption in order to study the relation between the two and also the effects of subsidy reform. Results show that consumption inequality has not been always mirroring changes in income inequality. However, both Gini coefficients indicate that subsidy reform caused improvement in inequality. Then we calculate Generalized Entropy Index based on consumption and income for years before and after the Subsidy Reform Act of 2010 in order to have a closer look into the changes in internal structure of inequality after subsidy reforms. We find that the improvement in income inequality is mostly caused by the decrease in inequality of lower income individuals. At the same time consumption inequality has been decreased as a result of more equal consumption in both lower and higher income groups. Moreover, the increase in Engle coefficient after the subsidy reform shows that a bigger portion of income is allocated to consumption on food which is a sign of lower living standard in general. This increase in Engle coefficient is due to rise in inflation rate and relative increase in price of food which partially is another consequence of subsidy reform. We have conducted some experiments on effect of subsidy payments and possible effects of change on distribution pattern and amount of cash subsidy payments on income inequality. Result of the effect of cash payments on income inequality shows that it leads to a definite decrease in income inequality and had a bigger share in improvement of rural areas compared to those of urban households. We also examine the possible effect of constant payments on the increasing income inequality for years after 2011. We conclude that reduction in value of payments as a result of inflation plays an important role regardless of the fact that there may be other reasons. We finally experiment with alternative allocations of transfers while keeping the total amount of cash transfers constant or make it smaller through eliminating three higher deciles from the cash payment program, the result shows that income equality would be improved significantly.

Keywords: consumption inequality, generalized entropy index, income inequality, Irans subsidy reform

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Authors: Wildan Syafitri

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The main purpose of the development is to embody public welfare. Its indication is shown by the increasing of the public prosperity in which it will be related to the consumption level as a consequence of the increasing of public income. One of the government’s efforts to increase public welfare is to create development equity in order to alleviate poor people. Poverty’s problem is not merely about the number and percentage of the poor people, but also it includes the gap and severity of poverty.the analysis method used is Benefit Incidence Analysis (BIA) that is an analysis method used to disclose the impact of government policy or individual access based on the income distribution in society. Further, the finding of the study revealed is that the highest number of the poor people in the village is those who are unemployed and have family members who are still in the Junior High School. The income distribution calculation shows a fairly good budget allocation applied with good mass ratio that is 0.31. In addition, the finding of this study also discloses that Indonesian Government policy to subsidize education cost for Elementary and Junior High School students has reached the right target. It is indicated by more benefits received by Elementary and Junior High School students who are poor and very poor than other income group.

Keywords: benefit incidence analysis, budget allocation, poverty, education

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Authors: Wei-Neng Wang, Jhy-Yuan Shieh, Jhy-Hwa Chen, Juin-Jen Chang

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This paper incorporate tax evasion into a one-sector real business cycle (RBC) model to explores the quantitative interrelations between income tax rate and equilibrium (in)determinacy, and income tax rate is endogenously determined in order to balance the government budget. We find that the level of the effective income tax rate is key factor for equilibrium (in)determinacy, instead of the level of income tax rate in a tax evasion economy. Under an economy with tax evasion, the higher income tax rate is not sufficiently to lead to equilibrium indeterminate, it must combine with a necessary condition which is the lower fraction of tax evasion and that can result in agents' optimistic expectations to become self-fulfilling and sunspot fluctuation more likely to occur. On the other hand, an economy with tax evasion can see its macroeconomy become more stabilize, and a higher fraction of income tax evasion may has a stronger stabilizing effect.

Keywords: tax evasion, balanced-budget rule, equlibirium (in)determinacy, effective income tax rate

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Authors: Trisiladi Supriyanto

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This study aims to establish a concept of rate of profit on Islamic banking that can create economic justice and stability in the Islamic Financial Market (Banking and Capital Markets). A rate of profit that creates economic justice and stability can be achieved through its role in maintaining the stability of the financial system in which there is an equitable distribution of income and wealth. To determine the role of the rate of profit as the basis of the profit sharing system implemented in the Islamic financial system, we can see the connection of rate of profit in creating financial stability, especially in the asset-liability management of financial institutions that generate a stable net margin or the rate of profit that is not affected by the ups and downs of the market risk factors, including indirect effect on interest rates. Furthermore, Islamic financial stability can be seen from the role of the rate of profit on the stability of the Islamic financial assets value that are measured from the Islamic financial asset price volatility in the Islamic Bond Market in the Capital Market.

Keywords: economic justice, equitable distribution of income, equitable distribution of wealth, rate of profit, stability in the financial system

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Authors: Li Sheng

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Based on an extended post-Keynesian model, we find that the association between the savings rate and income inequality is negative if savers’ funds are borrowed by spending households for consumption but positive if savings are channeled to investing firms for production. A negative association, such as the one that exists in the U.S., hinges on an income illusion created by an asset bubble and cheap credit. Thus, financial globalization leads consumption and income inequality to diverge, and the divergence is more extreme if lower-income groups have higher debt ratios. A positive association, such as the one that exists in China, relates to liquidity constraints faced by consumers such that consumption inequality closely follows income inequality. Our results imply that income inequality must be reduced in both types of countries to increase savings in deficit economies with negative associations and to reduce savings in surplus economies with positive associations.

Keywords: savings rate, income inequality, financial globalization, global imbalances

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Authors: Oladipo Joseph Ajayi, Yakubu Muhammed, Caleb Galadima

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This study was conducted to examine the income diversification of smallholder farmers in Bosso Local Government area of Niger state, Nigeria. The specific objectives were to examine the socio-economic characteristics of the farmers, identify the sources of income among the farmers, determine the pattern of income diversification and evaluate the determinants of income diversification of farmers in the study area. A multi-stage sampling technique was used to select 94 respondents for the study. Primary data were used, and these were collected with aid of a well structured interview schedule. Descriptive statistics, diversity index, and Tobit regression model were employed to analyze the data. The mean age of the farmers was 44 years. The average household size was 8 members per household, and the average farming experience was 12 years. 21.27 percent did not have formal education. It was further found that 69.1 percent of the respondents had an income diversity index of 0.3-0.4. This indicated that their level of income diversification was moderately low. The determinants of income diversification in the study area were education, household size, marital status, and primary income. These variables were positively related to income diversification. The study revealed that diversification into various income sources has helped to increase household income to sustain the family demands even though their level of income diversification was low within the study area.

Keywords: diversification, income, households, smallholder farmers

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Authors: Abdulwahab Alalyani, Mahbub Rashid

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Urban Open Space (UOS) a central role to promotes community health, including daily activities, but these resources may not available, accessible enough, and or equitably be distributed. This paper measures and compares spatial equity of the availability and accessibility UOS among low, middle, and high-income neighborhoods in Riyadh city. The measurement mothdulgy for the UOSavailability was by calculating the total of UOS with respect to the population total (m2/inhabitant) and the accessibility indicted by using walking distance of a 0.25 mi (0.4 km) buffering streets network.All UOS were mapped and measured using geographical information systems. To evaluate the significant differences in UOS availability and accessibility across low, medium, and high-income Riyadh neighborhoods, we used a One-way ANOVA analysis of covariance to test the differences.The findings are as follows; finding, UOSavailability was lower than global standers. Riyadh has only 1.13 m2 per capita of UOS, and the coverage accessible area by walking distance to UOS was lower than 50%. The final finding, spatial equity of the availability and accessibility, were significantly different among Riyadh neighborhoods based on socioeconomic status. The future development of UOS should be focused on increasing Urban park availability and should be given priority to those low-income and unhealthy communities.

Keywords: distribution urban open space, urban open space accessibility, spatial equity, riyadh city

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Authors: M. T. Alodat

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In this paper, we propose a mechanism for skewing any symmetric distribution. The new distribution is called the deflation-inflation distribution (DID). We discuss some statistical properties of the DID such moments, stochastic representation, log-concavity. Also we fit the distribution to real data and we compare it to normal distribution and Azzlaini's skew normal distribution. Numerical results show that the DID fits the the tree ring data better than the other two distributions.

Keywords: normal distribution, moments, Fisher information, symmetric distributions

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Authors: Yu-Shan Hsu

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This paper studies a two-sector growth model with a technology of social constant returns and with a utility that features either a zero or a positive income effect on the demand for leisure. The purpose is to investigate how the existence of aggregate instability or equilibrium indeterminacy depends on both the intensity of the income effect on the demand for leisure and the value of the labor supply elasticity. The main finding is that when there is a factor intensity reversal between the private perspective and the social perspective, indeterminacy arises even if the utility has a positive income effect on leisure demand. Moreover, we find that a smaller value of the labor supply elasticity increases the range of the income effect on leisure demand and thus increases the possibility of equilibrium indeterminacy. JEL classification: E3; O41

Keywords: indeterminacy, non-separable preferences, income effect, labor supply elasticity

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Authors: Wondmnew Derebe Yohannis

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The enhanced utilization of modern beehives holds significant potential to enhance the livelihoods of smallholder farmers who heavily rely on mixed crop-livestock farming for their income. Recognizing this, the distribution of improved beehives has been implemented across various regions in Ethiopia, including the Bugina district. However, the precise impact of these improved beehives on farmers' income has received limited attention. To address this gap, this study aims to assess the influence of adopting upgraded beehives on rural households' income and asset accumulation. To conduct this research, survey data was gathered from a sample of 350 households selected through random sampling. The collected data was then analyzed using an econometric stochastic frontier model (ESRM) approach. The findings reveal that the adoption of improved beehives has resulted in higher annual income and asset growth for beekeepers. On average, those who adopted the improved beehives earned approximately 6,077 Ethiopian Birr (ETB) more than their counterparts who did not adopt these beehives. However, it is worth noting that the impact of adoption would have been even greater for non-adopters, as evidenced by the negative transitional heterogeneity effect of 1792 ETB. Furthermore, the analysis indicates that the decision to adopt or not adopt improved beehives was driven by individual self-selection. The adoption of improved beehives also led to an increase in fixed assets for households, establishing it as a viable strategy for poverty reduction. Overall, this study underscores the positive effect of adopting improved beehives on rural households' income and asset holdings, showcasing its potential to uplift smallholder farmers and serve as an alternative mechanism for reducing poverty.

Keywords: impact, adoption, endogenous switching regression, income, improved beehives

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Authors: Feddaoui Amina

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Income smoothing represents an attempt on the part of the company's management to reduce variations in earnings through the manipulation of the accounting principles. In this study, we aimed to measure income smoothing practices in a sample of 30 French joint stock companies during the period (2007-2009), we used Dummy variables method and “ECKEL” model to measure income smoothing practices and Binomial test accourding to SPSS program, to confirm or refute our hypothesis. This study concluded that there are no significant statistical indicators of income smoothing practices in the sample studied of French companies during the period (2007-2009), so the income series in the same sample studied of is characterized by stability and non-volatility without any intervention of management through accounting manipulation. However, this type of accounting manipulation should be taken into account and efforts should be made by control bodies to apply Eckel model and generalize its use at the global level.

Keywords: income, smoothing, 'Eckel', French companies

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Authors: Hamid Boustanifar, Geraldo Cerqueiro, María Fabiana Penas

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We exploit state-level changes in the amount of personal wealth individuals can protect under Chapter 7 to analyze the causal effect of debtor protection on income inequality. We find that an increase in state exemptions significantly increases inequality by reducing income for low-income individuals and by increasing income for high-income individuals. The increase in inequality is four times larger among the self-employed than among wage earners, and it is due mainly to a growing income gap between skilled (i.e., individuals with a college degree) and unskilled entrepreneurs. We also find that the employment rate of skilled entrepreneurs significantly increases, while the employment rate of unskilled wage earners falls. Our results are consistent with a recent literature that shows that higher exemptions redistribute credit from low-wealth to high-wealth entrepreneurs, affecting the performance of their businesses.

Keywords: debtor protection, credit markets, income inequality, debtor protection laws

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Authors: Wondmnew Derebe

Abstract:

Increased adoption of modern beehives improves the livelihood of smallholder farmers whose income largely depends on mixed crop-livestock farming. Improved beehives have been disseminated to farmers in many parts of Ethiopia. However, its impact on income is less investigated. Thus, this study estimates how adopting improved beehives impacts rural households' income. Survey data were collected from 350 randomly selected households' and analyzed using an endogenous switching regression model. The result revealed that the adoption of improved beehives is associated with a higher annual income. On average, improved beehive adopters earned about 6,077 (ETB) more money than their counterparts. However, the impact of adoption would have been larger for actual non-adopters, as reflected in the negative transitional heterogeneity effect of 1792 (ETB). The result also indicated that the decision to adopt or not to adopt improved beehives was subjected to individual self-selection. Improved beehive adoption can increase farmers' income and can be used as an alternative poverty reduction strategy.

Keywords: impact, adoption, endogenous switching regression, income, improved

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Authors: Shumaila Ehtisham

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In Statistical Distribution Theory, considering an additional parameter to classical distributions is a usual practice. In this study, a new distribution referred to as α-Power Pareto distribution is introduced by including an extra parameter. Several properties of the proposed distribution including explicit expressions for the moment generating function, mode, quantiles, entropies and order statistics are obtained. Unknown parameters have been estimated by using maximum likelihood estimation technique. Two real datasets have been considered to examine the usefulness of the proposed distribution. It has been observed that α-Power Pareto distribution outperforms while compared to different variants of Pareto distribution on the basis of model selection criteria.

Keywords: α-power transformation, maximum likelihood estimation, moment generating function, Pareto distribution

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Authors: Serge Provost, Abdous Saboor

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A q-analogue of the generalized extreme value distribution which includes the Gumbel distribution is introduced. The additional parameter q allows for increased modeling flexibility. The resulting distribution can have a finite, semi-infinite or infinite support. It can also produce several types of hazard rate functions. The model parameters are determined by making use of the method of maximum likelihood. It will be shown that it compares favourably to three related distributions in connection with the modeling of a certain hydrological data set.

Keywords: extreme value theory, generalized extreme value distribution, goodness-of-fit statistics, Gumbel distribution

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Authors: Trisiladi Supriyanto

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Although much research has been done on the pricing benchmark both in terms of fiqh or Islamic economic perspective, but no substitution for the concept of interest (rate of interest) up to now in the application of Islamic Banking because some of the jurists from the middle east even allow the use of a benchmark rate such as LIBOR (London Interbank Offered Rate) as a measure of Islamic financial asset prices, so in other words, they equate the concept of rate of interest with the concept of rate of profit, which is the core reason (raison detre) for the replacement of usury as instructed in the Quran. This study aims to find the concept of rate of profit on Islamic banking that can create economic justice and stability in Islamic Banking and Capital market. Rate of profit that creates economic justice and stability can be achieved through its role in maintaining the stability of the financial system in which there is an equitable distribution of income and wealth. To determine the role of the rate of profit as the basis of the sharing system implemented in the Islamic financial system, we can see the connection of rate of profit in creating financial stability, especially in the asset-liability management of financial institutions that generate a stable net margin or the rate of profit that is not affected by the ups and downs of the market risk factors including indirect effect on interest rates. Furthermore, Islamic financial stability can be seen from the role of the rate of profit on the stability of the Islamic financial assets that are measured from the Islamic financial asset price volatility in Islamic Bond Market in Capital Market.

Keywords: Rate of profit, economic justice, stability, equitable distribution of income, equitable distribution of wealth

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Authors: Robertson Freeman

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The prime objective of this research is to examine income inequality and its effects on household livelihoods in Parker Paint. Many researchers failed to address the potential threat of income inequality on diverse household livelihood indicators, including health, food, housing, transport and many others. They examine and generalize the effects of income differentials on household livelihoods by addressing one indicator of livelihood security. This research fills the loopholes of previous research by examining the effects of income inequality and how it affects the livelihoods of households, taking into consideration livelihood indicators including health, food security, and transport. The researcher employed the mixed research method to analyze the distribution of income and solicit opinions of household heads on the effects of their monthly income on their livelihoods. Age and sex structure, household composition, type of employment and educational status influence income inequality. The level of income, Lorenz curve and the Gini coefficient was mutually employed to calculate and determine the level of income inequality. One hundred eighty-two representing 96% of household heads are employed while 8, representing 4%, are unemployed. However, out of a total number of 182 employed, representing 96%, 27 people representing 14%, are employed in the formal private sector, while 110, representing 58%, are employed in the private informal sector. Monthly average income, savings, investments and unexpected circumstances affect the livelihood of households. Infrastructural development and wellbeing should be pursued by reducing expenditure earmarked in other sectors and channeling the funds towards the provision of household needs. One of the potent tools for consolidating household livelihoods is to initiate livelihood empowerment programs. Government and private sector agencies should establish more health insurance schemes, providing mosquito nets, immunization services, public transport, as well as embarking on feeding programs, especially in the remote areas of Parker paint. To climax the research findings, self-employment, entrepreneurship and the general private sector employment is a transparent double-edged sword. If employed in the private sector, there is the likelihood to increase one’s income. However, this also induces the income gap between the rich and poor since many people are exploited by affluence, thereby relegating the poor from the wealth hierarchy. Age and sex structure, as well as type of employment, should not be overlooked since they all play fundamental roles in influencing income inequality. Savings and investments seem to play a positive role in reducing income inequality. However, savings and investment in this research affect livelihoods negatively. It behooves mankind to strive and work hard to the best of ability in earning sufficient income and embracing measures to retain his financial strength. In so doing, people will be able to provide basic household needs, celebrate the reduction in unemployment and dependence and finally ensure sustainable livelihoods.

Keywords: income, inequality, livelihood, pakerpaint

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Authors: A. Bozkurt, C. Kocatepe, R. Yumurtaci, İ. C. Tastan, G. Tulun

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Efficient use of energy, with the increase in demand of energy and also with the reduction of natural energy sources, has improved its importance in recent years. Most of the losses in the system from electricity produced until the point of consumption is mostly composed by the energy distribution system. In this study, analysis of the resulting loss in power distribution transformer and distribution power cable is realized which are most of the losses in the distribution system. Transformer losses in the real distribution system were analyzed by CYME Power Engineering Software program. These losses are disclosed for different voltage levels and different loading conditions.

Keywords: distribution system, distribution transformer, power cable, technical losses

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