Open AccessPosted Content
Inequality and Economic Growth: The Perspective of the New Growth Theories
Reads0
Chats0
TLDR
This paper analyzed the relationship between inequality and economic growth from two directions, showing that when capital markets are imperfect, there is not necessarily a trade-off between equity and efficiency, and provided an explanation for two recent empirical findings, namely, the negative impact of inequality and the positive effect of redistribution upon growth.Abstract:
We analyze the relationship between inequality and economic growth from two directions. The first part of the survey examines the effect of inequality on growth, showing that when capital markets are imperfect, there is not necessarily a trade-off between equity and efficiency. It therefore provides an explanation for two recent empirical findings, namely, the negative impact of inequality and the positive effect of redistribution upon growth. The second part analyzes several mechanisms whereby growth may increase wage inequality, both across and within education cohorts. Technical change, and in particular the implementation of "General Purpose Technologies," stands as a crucial factor in explaining the recent upsurge in wage inequality.read more
Citations
More filters
The relationship between Regional Growth and Regional Inequality in EU and transition countries - a Spatial Econometric Approach
TL;DR: In this paper, the authors investigate whether space and spatial relationships play a significant role in the specification of the relationship between regional inequality and regional growth, and they make use of spatial panel data models, as they let us consider both time-invariant country specific fixed effects and spatial dependence.
Journal ArticleDOI
Variable selection and functional form uncertainty in cross-country growth regressions
TL;DR: In this article, a joint treatment of variable selection and functional form uncertainty is proposed, using flexible nonlinear models specified by Gaussian process priors and addressing the variable selection problem by means of Bayesian model averaging.
Journal ArticleDOI
Rising Inequality in an Era of Austerity: The Case of the US
TL;DR: In this article, the authors examine trends in inequality and then review arguments that suggest that it is both good and bad for growth in America's cities, and provide evidence that there has been a reversal in the effects of inequality after 2000 with it now being associated with less income and job growth in US metropolitan areas.
Journal ArticleDOI
The Impact of an Economic Boom on the Level and Distribution of Subjective Well-Being: Ireland, 1994–2001
TL;DR: This article examined the impact of the recent economic boom in Ireland upon the level and distribution of various domains of well-being and found evidence of a substantial increase in life satisfaction in the domain of finance and of an improvement in mental wellbeing.
Journal ArticleDOI
Institutions of Conflict Management and Economic Growth in the European Union
TL;DR: Schneider and Wagner as discussed by the authors examined both positive and negative influences in the context of a simple growth model and predicted a non-linear relationship between institutions and growth, suggesting that the diminishing product range of institutions has not yet been reached.
References
More filters
Report SeriesDOI
Initial conditions and moment restrictions in dynamic panel data models
Richard Blundell,Stephen Bond +1 more
TL;DR: In this paper, two alternative linear estimators that are designed to improve the properties of the standard first-differenced GMM estimator are presented. But both estimators require restrictions on the initial conditions process.
The mechanics of economic development
Abstract: This paper considers the prospects for constructing a neoclassical theory of growth and international trade that is consistent with some of the main features of economic development. Three models are considered and compared to evidence: a model emphasizing physical capital accumulation and technological change, a model emphasizing human capital accumulation through schooling, and a model emphasizing specialized human capital accumulation through learning-by-doing.
Journal ArticleDOI
Legal Determinants of External Finance
TL;DR: The authors showed that countries with poorer investor protections, measured by both the character of legal rules and the quality of law enforcement, have smaller and narrower capital markets than those with stronger investor protections.
Journal ArticleDOI
An Exploration in the Theory of Optimum Income Taxation
TL;DR: In this paper, the authors make the following simplifying assumptions: (1) Intertemporal problems are ignored; (2) the tax system that would bring about that result would completely discourage unpleasant work; and (3) what such a tax schedule would look like; and what degree of inequality would remain once it was established.
Journal ArticleDOI
Income Distribution and Macroeconomics
Oded Galor,Joseph Zeira +1 more
TL;DR: The authors analyzes the role of wealth distribution in macroeconomics through investment in human capital and shows that the initial distribution of wealth affects aggregate output and investment both in the short and in the long run, as there are multiple steady states.
Related Papers (5)
Ability Biased Technological Transition, Wage Inequality, and Economic Growth
Oded Galor,Omer Moav +1 more