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Inequality and Economic Growth: The Perspective of the New Growth Theories
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
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Bridging Africa’s Income Inequality Gap: How Relevant Is China’s Outward FDI to Africa?
TL;DR: In this paper , the authors examined whether the remarkable inflow of Chinese FDI to Africa matters for bridging the continent's marked income inequality gap, and whether Africa's institutional fabric is effective in propelling Chinese FA towards the equalisation of incomes in Africa, and there exist relevant threshold levels required for various governance dynamics to cause Chinese FA to equalise incomes.
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Long-Run Growth and Income Distribution: Evidence for Italy and the US
TL;DR: In this article, the authors investigate the long-run growth process in Italy and the US over the period 1920-2001, using a common trends model, and find that long run economic growth can be explained by two permanent shocks, namely a technological shock and a labour supply shock.
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Essays in the Economics of Inequality
TL;DR: Harvey et al. as mentioned in this paper used the labour market attachment of the mother as a novel instrumental variable to tighten the bounds to the distribution of earnings and found that there are substantial differences between parent income groups and changes over time by son's and daughter's.
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Differences in Learning and Inequality
TL;DR: Lorenz and Lundvall as discussed by the authors described how Europe's economic learn: Coordinating Competing Models, Oxford University Press, 2011. But they did not discuss the role of competition models.
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Las desigualdades socioeconómicas entre los municipios de Nayarit, México
Rebeca de Haro Mota,Susana Marceleño Flores,Jose Iran Bojorquez Serrano,Oyolsi Nájera González +3 more
TL;DR: In this paper, the authors identify inequalities among the municipalities of the state of Nayarit, Mexico, based on an analysis of divergences with the indexes of socioeconomic development and socioeconomic development potential.
References
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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.
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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.
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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.
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