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BENEFITCOST ANALYSIS Financial and Economic Appraisal using Spreadsheets
Ch. 11: Distributional Weighting
© Harry Campbell & Richard Brown School of Economics
The University of Queensland
Accounting for Income Distribution
In the preceding chapters we assumed that each $ of net benefits of same value irrespective of sub-referent group
We need to acknowledge and account for:
Government’s income distribution objectives project’s distributional impacts
Accounting for Income Distribution
Atemporal vs. Intertemporal Distribution
Atemporal – how income (and income changes) distributed among individuals or groups at present; ie. within present generation
Intertemporal – how income (and income changes) distributed over time; ie. between present and future generations
Accounting for Income Distribution
Interpersonal distribution
How income is distributed among individuals or households
See Tables 11.1 and 11.2
Accounting for Income Distribution
Measuring Interpersonal distribution
Table 11.1 Distribution of Households by Annual Income
Annual Income (Y = $189)
Less than $100 $100 to 200 $200 to 300 $300 to 400 $400 to 500 More than $500
% Households
30.7 42.9 13.4 5.8 2.7 4.5
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