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A Note on the Global Income Distribution Curve ("The Elephant").
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- Author(s): Palestrini, Antonio; Gatti, Domenico Delli; Gallegati, Mauro; Hosseiny, Ali
- Source:
Nonlinear Dynamics, Psychology & Life Sciences; Apr2024, Vol. 28 Issue 2, p289-300, 12p- Subject Terms:
- Source:
- Additional Information
- Abstract: In this work, our objective is to explain the decline in the income share of the middle class and the increase in the share of the wealthy - a global empirical phenomenon, commonly referred to as "The Elephant" (Lakner & Milanovic, 2013; Milanovic, 2016) - by examining the different life-cycle income paths of heterogeneous income classes and the varying tax burden on labor and capital income. The model investigates the diverse life-cycle paths and their nonlinear behavior among the income classes under scrutiny. This approach enables us to dynamically analyze the divergence in the income distribution using one of the more important models in economics: The life-cycle and permanent-income framework. [ABSTRACT FROM AUTHOR]
- Abstract: Copyright of Nonlinear Dynamics, Psychology & Life Sciences is the property of Society for Chaos Theory in Psychology & Life Sciences (SCTPLS) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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