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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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Credit rationing of rural households in China
TL;DR: In this paper, a household survey on North China Plain is used to find pervasive rationing in the highly regulated formal credit market in rural China, where different borrower segments are systematically sorted out across different loan types.
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A New Poverty Decomposition
TL;DR: In this article, a new poverty decomposition is proposed that can be used to explain changes in poverty over time and the change in poverty is derived as the exact sum of four elements: (i) the overall growth effect, assuming inequality in the distribution does not change; (ii) the impact of differences in growth rates between the groups; (iii) the effect of change in inequality within the different groups; and (iv) the influence of changes in the population shares of the various groups.
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Bootstraps Not Band-Aids: Poverty, Equity and Social Policy
Nancy Birdsall,Miguel Székely +1 more
TL;DR: In this paper, the authors define social policy broadly to include macro and employment and other structural policies that affect poverty and social justice in foreseeable ways, as well as social investment programs such as health and education and social protection programs including cash and other transfers targeted to the poor.
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The Economic Importance of Education: Evidence from Africa Using Dynamic Panel Data Analysis
TL;DR: The existing literature has dealt inadequately with the link between education and economic growth in developing countries, particularly for Africa which has experienced a massive growth of enrolme... as mentioned in this paper,.
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Education, inequality and income inequality
Daniele Checchi,Daniele Checchi +1 more
TL;DR: In this article, a Gini index on educational attainments is proposed to measure inequality of educational achievements by constructing a GIN index on the educational attainment and then using the proposed measure to analyse the relationship between inequality in incomes and educational achievements.
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.
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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