The degree of inequality present in the distribution of income may be measured with a gini coefficient. If the distribution is found to empirically fit a particular distribution function, then the gini coefficient may be derived from the mean value of income and the variation from the mean. For the purpose of this study, the Beta II distribution was used as the function which most closely approximates the actual distribution of income. The Beta II function provides the skewness which is normally found in an income distribution as well as fulfilling other required characteristics. The degree of inequality was approximated for the distribution of income from all sources and from ten separate components of income sources in constant (1973) dollars. Next, permanent income from all sources and from the ten component sources was estimated based upon actual income using the double exponential smoothing forecasting technique. The estimations of permanent income, which can be thought of as expected income, were used to derive measures of permanent income inequality. The degree of actual income inequality and the degree of permanent income inequality, both being represented by the hypothetical gini coefficient , were compared and tested for statistical differences. For the entire period under investigation, 1952 to 1979, the net effect was no statistically significant difference between permanent and actual income inequality, as was expected. However, significant differences were found in comparing year by year. Relating permanent income inequality to the underlying, structural inequality present in a given distribution, conclusions were drawn regarding the role of mobility in its ability to alter the actual distribution of income. The impact of business fluctuations on the distribution of permanent income relative to the distribution of actual income was studied in an effort to reach general conclusions. In general, cyclical upswings tend to reduce permanent inequality relative to actual inequality. Thus, despite the empirically supported relationship between income inequality and economic growth, it would appear that unexpected growth tends to favor a more equal distribution of income.

Thesis (Ph. D.)--West Virginia University, 2007. / Title from document title page. Document formatted into pages; contains x, 165 p. : ill. (some col.). Includes abstract. Includes bibliographical references (p. 162-165).

Thesis (Ph.D.) - Carleton University, 2006. / Includes bibliographical references. Also available in electronic format on the Internet.

In South Africa, less than 10% of individuals are financially independent after retirement, with an increasing number becoming dependent on social grants from government – hence the importance of analysing the asset composition of high net worth individuals who have achieved financial independence. To achieve the aim of this study, it was first necessary to define net worth and to develop a theoretical framework of the assets and liabilities included in the measurement of an individual’s net worth and how these assets and liabilities should be valued. A definition of high net worth individuals was then formulated. Secondly, the factors influencing the asset composition of high net worth individuals, as well as selected demographic factors that influence net worth, were investigated. Finally, following a quantitative approach, data collected from the liquidation and distribution accounts of deceased individuals were analysed according to the developed framework. The results of this study suggest that are indeed differences in the contribution of the different asset types when measured using the mean, relative contribution and importance of the asset class in comparison with total assets. Further analysis revealed that the richest individuals included in the survey invested more in shares than the other groups for whom immovable property was the primary asset. Based on the analysis of selected demographic factors, the findings indicated that for many of the dependent variables, the asset used most by respondents in that group was not the same asset that made the highest contribution to the net worth of the individuals in the group. / Business Management / M. Com. (Accounting)

In South Africa, less than 10% of individuals are financially independent after retirement, with an increasing number becoming dependent on social grants from government – hence the importance of analysing the asset composition of high net worth individuals who have achieved financial independence. To achieve the aim of this study, it was first necessary to define net worth and to develop a theoretical framework of the assets and liabilities included in the measurement of an individual’s net worth and how these assets and liabilities should be valued. A definition of high net worth individuals was then formulated. Secondly, the factors influencing the asset composition of high net worth individuals, as well as selected demographic factors that influence net worth, were investigated. Finally, following a quantitative approach, data collected from the liquidation and distribution accounts of deceased individuals were analysed according to the developed framework. The results of this study suggest that are indeed differences in the contribution of the different asset types when measured using the mean, relative contribution and importance of the asset class in comparison with total assets. Further analysis revealed that the richest individuals included in the survey invested more in shares than the other groups for whom immovable property was the primary asset. Based on the analysis of selected demographic factors, the findings indicated that for many of the dependent variables, the asset used most by respondents in that group was not the same asset that made the highest contribution to the net worth of the individuals in the group. / Taxation / M. Com. (Accounting)