A Resource-Based Approach to the Modeling and Simulation of Income Distribution: The Case of Pakistan
AbstractDeveloping countries are affected by evident and persistent asymmetric income distribution. The increasing relevance of this issue to development agendas sets the need for planning tools that can support the analysis of the long-term impacts of alternative policies on income distribution. For this purpose we use a resource-based approach and develop a System Dynamics based simulation model, which we apply to the case of Pakistan. The model focuses on the processes of the accumulation of physical and human capital, which we consider as the endogenous sources of household income. Policy analysis suggests that public investment in education and micro-credit, financed by a modest increase in income tax for the high-income groups, positively affects equitable income distribution and economic growth. We believe that the analytical framework developed integrates and complements existing approaches to modeling income distribution by providing a broader and longer term perspective.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Journal of Income Distribution in its journal Journal of Income Distribution.
Volume (Year): 19 (2010)
Issue (Month): 3-4 (September-December)
Contact details of provider:
Postal: York Hall 327, 2275 Bayview Avenue, Toronto, Ontario M4N 3M6
Web page: http://pi.library.yorku.ca/ojs/index.php/jid/index
More information through EDIRC
income distribution; dynamic analysis; planning model; government policy; System Dynamics; resource-based approach; Pakistan;
Find related papers by JEL classification:
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- O21 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Benjamin Nicholls).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.