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Čtyři mechanizmy příjmové diferenciace (available in Czech only)

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  • Luděk Rychetník

    ()
    (Centre for Euro-Asian Studies, University of Reading)

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    Abstract

    This paper describes four mechanisms of income differentiation which generate inequalities both at national and international levels. They are: (i) Increasing returns to scale, (ii) cost of capital (interest) hidden in prices, (iii) economic rent derived from scarce natural resources, and (iv) exploitative state and private structures. Only the third and fourth mechanisms have been analyzed as they generate inequities, ie. inequalities which can be considered as unfair. It is argued that the effect of the third mechanism can be moderated by taxation paid from the rent. The fourth mechanism disrupts governance and economic activities in many developing countries and adversely affects the post communist states as well. International institutions as the World Bank pay increasing attention to it through their Governance and Anti-Corruption programmes. However a substantial improvement can be achieved by consistent effort of domestic forces in each country.

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    Bibliographic Info

    Article provided by Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies in its journal AUCO Czech Economic Review.

    Volume (Year): 1 (2007)
    Issue (Month): 2 (July)
    Pages: 155-179

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    Handle: RePEc:fau:aucocz:au2007_155

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    Related research

    Keywords: system legitimacy; inequality; economic rent; governance and anti-corruption;

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