• Journal of Distribution Science
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• v.17 no.1
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• pp.21-31
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• 2019

Purpose - As the market economy deepens, the issue of social equity caused by income distribution becomes more and more significant. Therefore, this paper attempts to exploit the determinants of income distribution in terms of macroeconomics. Research design, data, and methodology - The data set from 1990 to 2017 will be used to conduct an empirical analysis under a menu of econometric approaches such as vector autoregressive model and impulse response function. The income distribution and other macroeconomic variables such as foreign direct investment and employment will be used to conduct an empirical analysis to explore the determinants of income distribution in terms of macroeconomics. Results - The findings indicate that the income distribution is related with macroeconomics. More specifically, the export, import, GDP and foreign direct investment play a role in deteriorating the income distribution. Conversely, the industrialization, inflation and employment can improve the income distribution. Unfortunately, the inflation and employment do not get through under 5% significant test. Conclusions - Due to that a good income distribution can be beneficial for both a country and an individual, this paper provides a new scope for China's government to improve its income distribution in terms of macroeconomics.

• KDI Journal of Economic Policy
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• v.26 no.1
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• pp.141-190
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• 2004

Income inequality in Korea has increased after the economic crisis, and the main reason for the widening of income distribution is due to the increase of the unemployed when analyzed using the Urban Household Report(UHR). However, income inequality has not decreased although the rate of unemployment decreased after 2000. Further data bases for income-related statistics are necessary to examine the exact causes of changing income inequality as a whole since the UHR covers only statistics on urban employees' wage and salary in Korea.

• Health Policy and Management
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• v.5 no.1
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• pp.1-30
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• 1995

This study was conducted to investigate the distribution of private medical practitioners' income from the medical insurance and its determinants. Total amount of the medical service fee paid by the medical insurance to 1,268 private clinics(767 in Taegu and 510 in Kyungpook that had been in practice at least for one year) in 1993 was compared by the characteristics of practitioner, clinic, patient and population. The practitioners in 40-49 years of age and 6-10 years inpractice had the highest income. Total income of a clinic was increased with the number of physicians, employees and equipments. The largest income differentials were observed among obstetrics and gynecology clinics and the least differentials were among pediatrics clinics. The characteristics of practitioner, clinic and population accounted for 41.7% of the total variance of income. The important determinants of income were specialty of the clinic, age of the practitioner and number of the employee and equipments. The large income differentials among clinics imply a skewed distribution of patients and thus long waiting time, inefficient utilization of manpower and inadequate quality of care. Effective measures to reduce the income differentials need to be developed.

• The Journal of Industrial Distribution & Business
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• v.8 no.6
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• pp.87-95
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• 2017

Purpose - The structural changes of Korean agriculture are complex due to heterogeneous production processes and farms' features. This study analyzed trends of dualism in Korean agriculture over the period 2000-15 based on farm-level data to clarify the specific trends of dualism in terms of farm income, farm-size, and farm operators' age. From the results of this study, we would be able to understand the features of structural changes in Korean agriculture more profoundly. Research design, data, and methodology - We incorporated farm-level data in South Korea: Agricultural census and Farm household economy survey. As measures of inequality, we used size-weighted quantiles, and normalized Gini coefficients as well as mean and conventional quantiles. The size-weighted quantiles are more robust to changes in the number of small farms, but they are more sensitive to changes in the distribution of farm-size. Thus, they would be more useful to identify trends of dualism of Korean agriculture. Results - The results show that the farmland distribution of crop farms became more skewed and dispersed. However, the herd distribution of livestock farms became more concentrated. To be specific, their mean and 1st quantile increases more rapidly than their size-weighted 2nd quantile and size-weighted 3rd quantile. Gini coefficients of livestock farms regarding their herd distribution decreased by 0.1 on average. In the case of income distribution, the results indicate that the polarization regarding farm household/agricultural/non-agricultural income became more severe. However, we also found that the distribution of transfer income became concentrated continuously. The results imply that transfer income including subsidies would decrease farm income polarization. Lastly, during the study periods, Korean farms were aging over time, and age distribution of them more concentrated. Conclusions - The structure of Korean agriculture has been changing, even though the absolute size of it decreased over time. Land (herd) distribution became more dispersed (concentrated). Inequality regarding agricultural income became more severe, and it made farm household income more polarized even though transfer income would decrease income gaps among farms. Lastly, farms continue to age regardless of farm types and this might affect the structural changes in Korean agriculture in the future.

• Land and Housing Review
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• v.11 no.3
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• pp.11-19
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• 2020

This study aims to examine the relationship between the improvement of the income distribution index from the late 1980s to the 1990s and large-scale housing supply projects such as the 2 million housing construction project. Looking at Korea's economic development in terms of income growth and distribution, GDP has continuously increased since the establishment of the government, especially in the late 1980s. The Gini Index, a representative income inequality index, rapidly deteriorated in the early 1970s, and gradually improved from the late 1980s. The 2 million housing construction project, announced in 1988, supplied a third of the existing nationwide housing stock of 6.5 million units in three years. The project cost was 65 trillion won, equivalent to 50% of Korea's GDP at the time. This study questioned whether the ratio of the number of employed workers in the construction industry was a variable directly affecting the Gini Index. To verify this, the causal relationship between the proportion of employed workers in the construction and manufacturing industries and the Gini Index from 1979 to 2008 was statistically analyzed. For this, the ARIMA model was established for each variable, and the correlation of their residuals was verified. The 2 million housing construction project had the effect of improving income inequality in terms of rising wages for production workers and creating jobs for the low-educated and low-income class. During the project period, the number of middle-income earners increased sharply, and the income gap between the high-income and low-income earners greatly decreased. The expansion of the construction volume can be used as a powerful and direct policy tool for improving income distribution. However, the effect may be limited. When the proportion of workers exceeds the threshold, the effect is weakened.

• KDI Journal of Economic Policy
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• v.13 no.1
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• pp.135-149
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• 1991

The economic policy of decreasing the electricity price is widely understood to have the effect of stabilizing the general price level and improving the income distribution. However, the impact of electricity price decrease on the income distribution is not quite sure although the electricity price decrease would increase the disposable income of all households. The electricity price change would affect the income distribution through three channels. The first impact on the income distribution is made through the electricity price sructure; Korean electricity price structure is designed to subsidized the industrial sector at the cost of household consumption sector in the sense that the price per unit electricity for industrial sector is much lower than that for household consumption sector. The second impact on the income distribution is created through the disposable household income effect of the price decrease; Relative disposable income effect among households appeared higher to lower income household group and this relative disposable income effect seem to improve the income distribution although the net effect is very small. The third impact on the income distribution is formulated through the net profit effect of entreprise sector; This unearned net profit increase to the already rich industrial entrepreneurs group could create a negative income distribution effect. A simulation of 10% electricity price decrease with all the price structure given was attempted to calculate the net effect of income distribution and it was found the net income distribution effect of flat electricity price decrease to be negative contrary to the general understanding. The income distribution effect would only be one criterion among many other criteria considered in the electricity price making process. The electricity price decrease would be helpful to the price stabilization and price competitiveness of industrial sector. However, it does not improve the general income distribution status by the electricity price decrease with the price structure given.

• Journal of Distribution Science
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• v.20 no.9
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• pp.23-28
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• 2022

Purpose: Research on banking sustainability plays an important role in helping banks understand the level of risk in different types of companies. Therefore, this study was conducted to determine the factors affecting the sustainability of Joint Stock Commercia l Banks in Vietnam. Research design, data and methodology: The following theories, the factors affecting the bank's sustainability include: Business model diversification (income diversification), bank size, loan ratio, and net interest margin. Data was collected from Joint Stock Commercial banks in Vietnam from 2015 to 2019. With GLS model on panel data with banks listed on Vietnam stock exchange. Results: The analysis results show that net interest income has a positive impact on the sustainable business results of banks through the rate of return on total assets (ROA). The non-interest income hasn't impact on bank stability. From this result, there aren't positive signs of income diversification in banks. At the same time, with the obtained results, the study also provides a policy implication for banks. Conclusions: The study also provides some policy implications to improve the bank stability. Diversifying income in banks is necessary, but how to make it influential banks has not yet been done. Therefore, the adjustments in non-interest business activities need to be carefully considered by banks.

• Environmental and Resource Economics Review
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• v.9 no.3
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• pp.545-562
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• 2000

Environmental regulation affects real income distribution as well as resource allocation. The consumers' quality of life is sure to be improved by the pollution abatement, but consumers should pay part of the abatement cost through the increased prices of consumption goods they purchase. This paper computes pollution abatement costs that each of 15 income classes in Korea paid indirectly by consuming goods whose prices include the abatement cost in 1993. The distribution of pollution abatement costs among income classes turns out to be regressive as expected.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.613-624
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• 2021

This paper analyzes the relationship between income distribution and energy consumption from a Pareto optimal approach. For this purpose, the causality relationship between electricity consumption per capita (kWh) with respect to country groups and energy consumption per capita (kg of oil equivalent) along with gross domestic product per capita was analyzed. In addition to this purpose, a Pareto analysis was conducted to determine the countries with the highest per capita national income, how much of the world total energy they consume, and whether the law of power in the energy and electricity markets exists. Finally, the impact of official development assistance provided to low-income countries by high-income countries on the low-income countries' electricity and energy consumption was analyzed. In other words, it was questioned whether pareto redistribution policies serve the purpose or not. The Engle-Granger causality approach was used in the analysis of the causality relationship between variables. Our analysis indicated that, first, the energy data of the country groups may be inadequate in revealing income inequalities. Second, the existence of Pareto law of power and global income inequality can be explained based on energy data. Finally, Pareto optimal redistribution policies to eliminate income inequality remain inadequate in practice.

• Journal of Distribution Science
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• v.21 no.3
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• pp.71-82
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• 2023

Purpose: This study examines the distribution of income diversification in improving the financial sustainability of private universities amidst difficulties in operational funding during the Covid-19 pandemic with IT Capability moderation. Research design, data and methodology: Closed survey aimed at 468 financial sector leaders from 189 private universities in ten provinces in Indonesia. Results: All income diversification activity variables have a significant positive effect on financial sustainability. In the analysis of liquidity indicators, there are two activities that have a significant positive effect, namely goods and services (β=0.337) and profitable financial management (β=0.124). Furthermore, the results of the solvency indicator test obtained significant positive results in Goods and Services Activities (β=0.337), Commercial Intellectuals (β=0.161), Commercial Contracts (β=0.103), and Profitable Financial Management (β=0.147). The results of the test of higher education growth indicators on three activities have a significant positive effect, namely Goods and Services (β = 0.290), Endowments (β = 0.158), and Commercial Contracts (β = 0.134). The results of the moderation test conclude that IT Capability strengthens the effect of income diversification on financial sustainability. Conclusion: The results of the study as a recommendation for private universities in developing income diversification with information system technology-based management.