*Assistant Professor, University of Allameh Tabataba'i University (metavassoli@gmail.com)
**Associate Professor, University of Economic Sciences (farahanifard@ues.ac.ir)
***MSc of Islamic Economy, University of Economic Sciences (rahman.baizidi@gmail.com)
*This paper is derived from the MSc dissertation(thesis) by Mr. Rahman Baizidi, entitled “Comparative analysis of the theoretical independence of the central bank in conventional economics and Islamic economics” at the University of the Economic Sciences
One of the most important indication of social growth and and welfare state in the society is income or wealth distribution equilibrium in this society. one of the most important index in this evaluation is the Gini coefficient. An economic index for wealth distribution measurement among people. A high Gini coefficient in a special country usually means that there is a high social class differences and inequalities in that country. Effective factors on this coefficient is important because it is an item for economic justice. Our hypothesis is that inflation is one the effective factors on this coefficient, therefor we analyze this efficacy in this study. We have used the Gali and Hayon model and because of Islamic and non-developed countries feature we have adjusted and added some of the variables. The estimation method is Ordinary least squares (OLS) method. The results show that there is direct relation between inflation and Gini coefficient, and we conclude that by inflation rising in Iran the differences between different deciles income will increase, and in the following it causes injustice and improper income distribution among people.
Inflation, Gini coefficient, government spending, economic justice
