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Volume 1, Issue 2


Čtyři mechanizmy příjmové diferenciace (Czech only)

Rychetník, Luděk

Year: 2007   Volume: 1   Issue: 2   Pages: 155-179

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.

JEL classification: A13, D63, H11, O17

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

RePEc: http://ideas.repec.org/a/fau/aucocz/au2007_155.html

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