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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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A Hypothesis of the Co-evolution of Cooperation and Responses to Inequity
TL;DR: Comparative studies indicate a link between the degree and extent of cooperation between unrelated individuals in a species and that species’ response to inequitable outcomes and this latter line of evidence indicates that this behavior evolved in conjunction with cooperation and may represent an adaptation to increase the payoffs associated with cooperative interactions.
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The effect of consumption and production structure on growth and distribution: A micro to macro model
TL;DR: In this article, a theoretical analysis of long-run economic growth as an outcome of structural changes is presented, where the authors observe and explain the interactions between technological change, firm organization, income distribution, consumption behavior and growth.
Journal ArticleDOI
Inequality and Growth: Uncovering the Main Conclusions from the Empirics
Pedro Neves,Sandra T. Silva +1 more
TL;DR: This article conducted a critical survey of the empirical literature on the effects of inequality on economic growth and concluded that the disparities found in the results are most likely due to differences in the type of countries and time periods included in the samples, the variable used to measure inequality, the structure of the data, and the estimation techniques.
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Conditional cash transfers in brazil, chile and mexico: impacts upon inequality
Sergei Suarez Dillon Soares,Rafael Guerreiro Osorio,Fabio Veras Soares,Marcelo Medeiros,Eduardo Zepeda +4 more
TL;DR: In this article, the authors investigated whether the conditional cash tranfers (CCT) had an inequality reducing effect in three Latin American countries: Brazil, Mexico and Chile, and concluded that CCT programs helped reducing inequality between the mid 1990s and the mid 2000s.
Posted Content
Education, Social Equality and Economic Growth: A View of the Landscape
Thorvaldur Gylfason,Thorvaldur Gylfason,Thorvaldur Gylfason,Gylfi Zoega,Gylfi Zoega,Gylfi Zoega +5 more
TL;DR: In this article, three different measures of education, including gross secondary-school enrollment, public expenditure on education relative to national income and expected years of schooling for girls, were compared to the distribution of income as measured by the Gini coefficient and economic growth across countries.
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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