• Journal of the Chungcheong Mathematical Society
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• v.29 no.2
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• pp.329-336
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• 2016

The optimal portfolio choice problem with a stochastic income is considered in continuous-time framework. We provide a novel approach to treat the stochastic income when the market is complete. The developed method is useful to obtain closed-form solutions of the problems under borrowing constraints.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.613-624
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• 2021

This paper analyzes the relationship between income distribution and energy consumption from a Pareto optimal approach. For this purpose, the causality relationship between electricity consumption per capita (kWh) with respect to country groups and energy consumption per capita (kg of oil equivalent) along with gross domestic product per capita was analyzed. In addition to this purpose, a Pareto analysis was conducted to determine the countries with the highest per capita national income, how much of the world total energy they consume, and whether the law of power in the energy and electricity markets exists. Finally, the impact of official development assistance provided to low-income countries by high-income countries on the low-income countries' electricity and energy consumption was analyzed. In other words, it was questioned whether pareto redistribution policies serve the purpose or not. The Engle-Granger causality approach was used in the analysis of the causality relationship between variables. Our analysis indicated that, first, the energy data of the country groups may be inadequate in revealing income inequalities. Second, the existence of Pareto law of power and global income inequality can be explained based on energy data. Finally, Pareto optimal redistribution policies to eliminate income inequality remain inadequate in practice.

• Journal of the Korean Home Economics Association
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• v.30 no.1
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• pp.237-255
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• 1992

The purpose of this study was to investigate relations of resources and demands, family financial management and financial statement of urban households by applying a system approach. The results of this study were as follows; Saving rate had significant differences according to resources variables such as age, family life cycle, occupation of househead and housewife, ratio of employed to family member, and to demands variabels such as subjective prospect of business cycle, and value orientation, whereas total saving amount had significant differences according to resources vaiables such as age, family life cycle, educational level, percapita income, occupation of househead, type of income and to demand variable, perception of relative income. Also average monthly saving amount had significant differences according to resources vaiables such as educational level, per capita income, occupation of housewife, housing ownership, ratio of employed to family member, ratio of dependent to employed, and to demands variable, perception of relative income. The stocks had significant differences according to resources variables such as age, family life cycle, educational level, per capita income, occupation of househead, type of income, and housing ownership. Finally, real estate had significant differences according to resources variables such as age, family life cycle, educational level, percapita income, occupation of househead, type of income, housing ownership, and to demands variable, perception of relative income. Financial Statement among urban households according to family financial management had significant differences. And among all variables affecting financial statement among urban households, per capita income had the highest effect and perception of relative income was the second.

• Journal of Families and Better Life
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• v.27 no.2
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• pp.77-97
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• 2009

This study evaluates the poverty experiences of low-income single mothers according to the Capability Approach of Amartya Sen. In this approach, the capability to achieve the basic functionings of life, not income itself, is the criterion of poverty. 26 single mothers were interviewed using focus-group interviews and in-depth interviews. 21 functionings on the existence level, 18 on the relatedness level, and 15 on the growth level were found in the areas of work, health, food consumption, clothing, housing, child rearing, and leisure. The results of this study suggest that low-income single mothers can achieve only some of the existence level functionings with significant help from welfare services. They can scarcely achieve higher level functionings in any of these areas.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.111-122
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• 2021

The main purpose of the present research is to analyze the effects of trade, financial globalization, and technological progress on income inequality in the Indian economy over the period from 1982 to 2018. For this purpose, the study uses economic growth, financial globalization, trade openness, technological development, and economic inequality variables with appropriate proxies. The study employs the Auto Regressive Distributed Lag (ARDL) approach to co-integration and VECM based Granger causality approach to estimate both the short-run and long-run relationship and causality among variables. Using the ARDL bounds test, the study finds a long-run co-integrating relationship existing among the variables in the model. The study confirms the existence of a positive and significant impact of technological progress on income inequality. Further, globalization's limited impact reflects two offsetting tendencies; trade globalization is associated with a reduction in income inequality, while financial globalization is related to an increase in inequality. The results of VECM based Granger causality approach further confirm that technological progress, trade, and financial globalization causes income inequality both directly and indirectly through economic growth and inflation. In case of India, the results of this research can significantly facilitate stakeholders and policymakers in devising policies towards effective globalization and technological innovation for inclusive growth.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.12
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• pp.19-29
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• 2021

This study aims to measure financial inclusion and examine its impact on income inequality in a panel of 18 Asian countries over the period 1997-2017. Two alternative approaches for developing financial inclusion index are used: one approach following the methodology of Sarma (2008), while the other is the Dynamic Factor Model (DFM)-based index. The impact of individual indicators and index of financial inclusion on inequality in income is analyzed. The Generalized Method of Moment (GMM) approach is used for empirical analysis. The results indicate that micro-level financial inclusion has a weak negative and statistically significant impact on income inequality. Macro-level index and all individual indicators of financial inclusion do not affect income inequality in the selected sample of economies. The income inequality issues have different natures and cannot be fixed by financial inclusion only. It needs holistic structural reforms to enable fair distribution of income and make an equitable financial system. Financial inclusion is a relatively less important intervention tool regarding fixing the issue of income inequality. This is one of the first studies that used the DFM method for financial inclusion indices construction.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.821-832
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• 2021

Earnings management is very important for companies that aim for decision-making. The research was conducted to analyze the quality of earnings and income smoothing motives in manufacturing companies in Indonesia. The research approach is carried out with a quantitative approach. The sampling method using purposive sampling was associated with several criteria so that a sample of 130 was determined, which was analyzed during the 4 years of the study. The partial least square method was used for data analysis. The results of the study state that institutional ownership has no effect on earnings quality, institutional ownership has a negative effect on income smoothing, leverage has a negative effect on income smoothing, independent commissioners have a positive effect on earnings quality as well as independent commissioners have a positive effect on income smoothing. We assume that the tendency of income smoothing can affect the quality of efficient earnings. Meanwhile, income smoothing affects the quality of company earnings. Management that performs income smoothing is more aimed at conveying the company's prospects for generating profits rather than opportunistic motives.

• Journal of Korean Society of Forest Science
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• v.109 no.1
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• pp.99-108
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• 2020

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.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.1
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• pp.71-81
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• 2019

The objective of the study is to examine the impact of financial development and foreign remittances on poverty and income inequality in the context of Pakistan. The study used ARDL-Bounds testing approach for robust inferences. The results show that in the short-run, remittances increases poverty and income inequality, which further translated into its long-run impact. The result confirmed the inverted U-shaped relationship between per capita income and income inequality, while the second order coefficient of per capita income substantially decline poverty incidence in a country. In the long-run, the results disappeared and it's turned into U-shaped relationship between income inequality and country's per capita income. Education largely decreases income inequality both in the short and long-run, however, it increases poverty in the long-run. Unemployment rate substantially damaged the pro-poor growth scenario, as high unemployment rate increases both the poverty rates and income inequality, which suffered poor more than non-poor in a country. Financial development has a positive impact on poverty reduction and income inequality in the short-run. The impact of income inequality on poverty incidence is positive both in the short- and long-run, which need pro-poor growth policies and rationale income distribution in a country.

• Management & Information Systems Review
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• v.7
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• pp.93-111
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• 2001

In this article, we perform an international overview of accounting standards for tax effect accounting(or income taxes). Specially, we compare accounting standards for tax effect accounting of U.S. and International Accounting Standards. The principal component of U.S. accounting standards for tax effect accounting is as follow. Statement of Financial Accounting Standards No. 109, Accounting for Income Taxes (SFAS No. 109) represents the culmination of a multi-year process in which Financial Accounting Standards Board (FASB) reviewed and subsequently modified the requirements for accounting for income taxes. SFAS No. 109 requires an 'asset and liability' approach for the accounting for income taxes. That is, deferred income taxes are viewed as assets and liabilities of the firm, and deferred tax expenses id determined by the current-year change in the firm's deferred tax liabilities and assets. Previously, Accounting Principles Board Opinion No. 11, Accounting for Income Taxes (APB No. 11) required a 'deferral' approach to accounting for income taxes. The primary intent of the deferral approach was to match tax expense with corresponding revenues and expenses for the year in which the revenues and expenses were recognized in the financial statement. Unlike the SFAS No. 109, APB No. 11 did not require firms to adjust deferred tax balances for subsequent events such as changes in tax rates or laws. And, the principal deference between SFAS No. 109 and the previous statement on accounting for income taxes, SFAS No. 96, is that SFAS No. 109 requires firms to recognize deferred tax assets for the tax benefits of tax credit or operating loss carryforwards, no matter how likely the firm was to realize these benefits, and this was one of the reasons for its demise.