The Effects of Possessive and Governing Roles of Government on Income Distribution via ARDL Model: A Case Study on Iran

The kind and scale of intervention government in economy and manner of its effecting on macro economic factors, have discussed ever between economists in recent decades.Income distribution topic is one of the important economic-social topics that said effects evaluating on that, creates the general goal of this research. So difference between kinds of intervention government in economy (possessive & governing) creates different effects on society income distribution, is the main hypothesis of this research.First the subjective principles are expressed in this research, and then proximate indexes of possessive role and governing role of government in economic topics are derivated. Thenceforth by some income distribution indexes, effects kinds of these different government roles on Iran income distribution in time series 1979-2006 via ARDL model are regressed.The result of this research shows that increasing the governing role of Government and decreasing the possessive role of Government, improve the income distribution indexes.