Aggregation bias and the sensivity of income distribution to changes in the composition of demand
The case of Colombia
Bibliographic Data
| ID | 20302487 |
|---|---|
| Authors | Wayne R Thirsk (University of Waterloo, corresponding author) |
| Year | 1979 |
| Volume | 16 |
| Issue | 1 |
| Pages | 50-66 |
| Publication date | 1979-10-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | The Journal of Development Studies (JOURNAL) |
| Journal identifiers | ISSN: 0022-0388 • E-ISSN: 1743-9140 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/00220387908421743 |
| OpenAlex | W1974094165 |
| Language | EN |
| Citations received | 1 |
| References cited | 4 |
Recent empirical studies have discredited the hypothesis that there exists a strong, or even reliable, relationship between expenditures by income class and the distribution of income. A weakness in all of these studies is that the composition of firm size in each industry is not permitted to vary in response to a redistribution of income. This paper examines the importance of such an aggregation bias. Within the framework of a partially closed input‐output model for Colombia, the following question is posed. To what extent will a fiscal redistribution favouring the poor be reinforced if the poor (rich) purchase their goods and services exclusively from small (large) firms in every industry? Reinforcement in these circumstances is found to be substantial: a dollar of income transferred to the poor will ultimately raise their incomes by as much as two, or perhaps even three, dollars. There may thus be a high payoff to designing future expenditure surveys that are linked directly to the firm size characteristics of the supplier
Distribution (mathematics) · Economics · Income distribution · Inequality · Labour economics · Liberian dollar · Microeconomics · Public good · Redistribution (election) · Redistribution of income and wealth · Economic Theory and Policy · Finance · Income, Poverty, and Inequality
| Unique citing works | 1 |
|---|---|
| Citations per year | 0.02 |
| Citation span | 1981 - 1981 (1) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |