Islamic Economics

Islamic Economics

The Effect of Religiousness on Inequality of Income and Size of Government in Iran

Document Type : Original Article

Authors
parvaneh kamali dehkordi 1
Fereshteh abdelahi 2
abdollkhalegh ghobaysgawwi 2
1 Faculty member of Payam Noor University of Economics
2 Master of Planning and Economic Development
Abstract
There are two views on religious beliefs and income distribution. The first view is that People only pay religious taxes and do not pay legal taxes and income distribution is unequal distribution. The second view, distribution is more equitable because not only through fiscal policies made by the government, but also by paying religious taxes by the people, distribution system gets balanced.
 Here, to understand the relationship between religious beliefs, government size, and income distribution, the resurrection belief variable,   , Can be followed as an independent variable by paying religious taxes that express charity. followers of other religions have also been used as a control variable in the analysis of ARDL economics over the period 1353-1396.
Based on the findings:
In the short and long run , religiosity has a negative effect on government size and income inequality, and it has a positive effect in  the short run and negative   effect in long run on  tax rates.
Democracy has negative impact on income inequality, and private sector size has positive impact on tax burden.
Followers of Islam have had a positive impact on government spending and transitional payments, while having a negative impact on income inequality and tax burden in long run.
Jewish followers have a negative effect on income inequality and a positive effect on transitional and tax burden.
In the long run, there is a negative relationship between followers of other religions and income inequality and a positive relationship between followers of other religions and tax burdens.
Keywords
Religion
Voluntary contributions
Taxes
Redistribution
Religiosity
Income inequality
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