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Inequality and Economic Growth: The Perspective of the New Growth Theories
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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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Measuring the Effects of Education on Health and Civic Engagement
Richard Desjardins,Tom Schuller +1 more
TL;DR: Desjardins et al. as mentioned in this paper developed a framework to investigate the relationship between learning and well-being, and to improve the knowledge base for policy decisions on private and public benefits.
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Counting Calories: Democracy and Distribution in the Developing World
Lisa Blaydes,Mark Andreas Kayser +1 more
TL;DR: In this article, the authors proposed an alternative measure of transfers to the poor that is nearly universally available and innately captures distribution: average daily calorie consumption, and found that democratic governance reduces inequality and delivers material benefits to the poorest.
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Winners and Losers: Assessing the Distributional Impact of Privatization
Nancy Birdsall,John Nellis +1 more
TL;DR: The authors review the increasing literature and conclude that most privatization programs appear to have worsened the distribution of assets and income, at least in the short run, and this is more evident in transition economies than in Latin America.
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Economics Reform and Wage Differentials in Latin America
TL;DR: In this paper, the authors developed and applied a new approach to the estimation of the impact of economy-wide reforms on wage differentials using a new high-quality data set.
Posted Content
Human Capital Inequality, Life Expectancy and Economic Growth
TL;DR: The authors presented a model in which inequality affects per capita income when individuals decide to invest in education taking into account their life expectancy, which depends to a large extent on the human capital of their parents.
References
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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.
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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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