The Journal of Economic Studies and Policies

The Journal of Economic Studies and Policies

Ahlowalia – Asafo Model Testing to Identify the Factors Affecting Income Inequality in the Rural Sector of Iran

Document Type : Original Article

Author
Ali Bagherzadeh
Assistant Professor of Economics, Islamic Azad University, Khoy Branch
Abstract
One of the goals of economic development in each country is to improve the incomes of rural households. In this regard, one of the key ways to achieve this goal is strengthening human capital factors such as health (Hygiene) and education. Health Promotion and the education of people in rural areas because of its effects on increasing productivity will increase the income of people in rural areas.And thus the states will access to its original ideals of equality and justice. According to a linear model of Ahlowalia – Asafo,the overall aim of this study was to investigate the effects of human capital and infrastructure costs over income inequality in rural areas of the Iran. For this purpose, we used the auto regressive distributed lag models (ARDL) and time series data for the years 1979- 2011. The results showed that the investments in the field of health, education and infrastructure costs have a significant impact on reducing income inequality in rural areas of Iran. In addition, the linear model of Ahlowalia – Asafo based on the relationship between total factor of productivity in agricultural sector and income inequality in rural areas is not voidable.
Keywords
Linear Ahlowali - Asafo Model
education
Health Care
Income Inequality
TFP

الف- فارسی

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ب- لاتین

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The Journal of Economic Studies and Policies
Volume 1, Issue 2 - Serial Number 2
Issue 2
January 2018
Pages 137-152