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http://dx.doi.org/10.14578/jkfs.2020.109.1.99

Using a Dynamic Approach to Analyze the Relationship between Forest Household Income and Income Inequality  

Kim, Eui-Gyeong (Department of Forest Environmental Resources, Gyeongsang National University (Institute of Agriculture and Life Science))
Kim, Dae-Hyun (Forest Research Department, Gyeongsangnamdo Forest Environment Research Institute)
Kim, Dong-Hyun (Division of Global Forestry, National Institute of Forest Science)
Publication Information
Journal of Korean Society of Forest Science / v.109, no.1, 2020 , pp. 99-108 More about this Journal
Abstract
Although the relationship between income and income inequality has previously been discussed, the present study applies a dynamic approach to analyze the specific relationship between forest household income and income inequality. For this analysis, a unit root test and a cointegration test were conducted to characterize the nature of income time-series data. After converting unstable time-series data into stable time-series data, a VAR model was estimated. Based on this model, an impulse-response was generated and variance-decomposition analysis was performed. These analyses showed that the effect of forest household income was relatively larger than that of the Gini coefficient, and that the impact of forest household income not only caused income to increase but also caused the Gini coefficient to decrease. In addition, the impact of the Gini coefficient had an impact on reducing forest household income and further increasing income inequality. We conclude that, with the aim of alleviating the inequality of forest household income, an income growth policy would be more effective than an income distribution policy.
Keywords
gini coefficient; forest household income; cointegration test; VAR model;
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