The arguments that the alarming level of Gini coefficient is 0.4 are widely reported. However, to the authors' knowledge, it is not based upon any rigid economic theories. In this paper, they show that Rawls' fairness is compatible with the standard model of competitive markets. This finding...

The argument that the alarming level of Gini coefficient is 0.4 is very popular, especially in the media industry, all around the world for a long time. Although the 0.4 standard is widely accepted, the derivation of the value lacks rigid theoretical foundations. In fact, to the best of our...

This paper considers three-dimensional panel data models with unobservable multiple interactive effects, which are potentially correlated with the covariates. We propose an iterated OLS (IOLS) approach for the estimation of the static model and an iterated GMM (IGMM) method for the dynamic...