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
MonographDOI
Macroeconomic Policies and Poverty
Ashoka Mody,Catherine Pattillo +1 more
TL;DR: In this article, the authors present a review of various tools available to evaluate the impact of economic policies in general on poverty reduction, or on the distribution of living standards, and explore directions for improvement.
Journal ArticleDOI
Measuring and explaining poverty in six African countries: A long‐period approach
TL;DR: A database of indicators of poverty and deprivation in six African countries over the last 100 years is presented in this article. But the authors focus on the first decades of the 20th century, when the United Kingdom of Great Britain and Ireland allowed the occupation of agricultural land by European settlers, and argue that the legacy was a lack of bargaining power by Africans in the labour market, a real wage static at the subsistence level until late in the century, and a highly unequal income distribution.
Trade Liberalisation and Poverty: The Empirical Evidence
TL;DR: The authors survey the evidence on trade liberalisation and poverty under four headings: macroeconomic aspects (growth and fluctuations), households and markets, wages and employment and government revenue and spending.
Book
Agrarian Reform in Russia: The Road from Serfdom
TL;DR: In this article, Dilemmas of Agrarian reform in Russia: 1. Imperial reform, 1861-1913 2. The NEP and Soviet era reforms, 1921-89 3. Transition agrarian reform, 1991-2008 Part II. Rural organization and entrepreneurship Part III. The productivity of Russian agriculture
Journal ArticleDOI
Inequalities in income and education and regional economic growth in western Europe
TL;DR: In this article, the authors examined the relationship between income and educational distribution and regional economic growth in western Europe and found that, given existing levels of inequality, an increase in a region's income and education inequality has a significant positive association with subsequent economic growth.
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