ECONOMIC-THEORETICAL ASPECTS AND CONTEMPORARY IMPLICATIONS OF THE PROBLEM OF UNEQUAL INCOME DISTRIBUTION

Dragan Petrović, Zoran D Stefanović

DOI Number
https://doi.org/10.22190/TEME181109027P
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Abstract


The paper analyzes the key aspects of economic inequality in the light of conflicting attitudes and arguments of various theoretical and methodological concepts. The conclusions of the empirical studies are outlined, which indicate that economic growth is threatened in the conditions of escalation of inequality and the resultant undermining of the stability and efficiency of the economic and institutional system. On the other hand, evaluated are also the findings of those surveys showing that a strong redistribution of income leads to the reduction of the rate of economic growth, emphasizing that inequality is an important feature of the market economy. Parallel to identifying objective difficulties and the causes of insufficiently relevant understanding of problems related to uneven distribution of income, key dilemmas regarding the scientific evaluation of the implications of economic inequality are analyzed. It is pointed out that there is a need to distance the academic community from presenting empirically unfounded observations and unjustified exaggerations as well as underestimating the economic and social challenges of solving the problem of uneven distribution of income. In this context, the results of the researches of economic inequality in the Republic of Serbia were analyzed, with reference to the role, position and orientation of the state in terms of designing and implementing measures aimed at mitigating its consequences on the economy and society.


Keywords

economic inequality, GINI coefficient, economic growth, income redistribution, concept of border productivity.

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DOI: https://doi.org/10.22190/TEME181109027P

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