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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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Does the Profile of Income Inequality Matter for Economic Growth
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Finance and Inequality: Channels and Evidence
TL;DR: In this article, the authors provide a framework to interpret the recent literature on financial development and inequality, and provide evidence that poor access does not only reflect economic constraints but also barriers erected by insiders.
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Reducing inequalities in health : a European perspective
TL;DR: Part One: Introduction Part Two: Key Conceptual Issues 2. Health Impact Assessment 3. Evaluation Issues 4. Universalist Verses Selectivist Approach 5. Gender Perspective Part Three: National Experiences 6. Reflections on European Experiences
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Intergenerational Persistence of Earnings: The Role of Early and College Education
Diego Restuccia,Carlos Urrutia +1 more
TL;DR: This paper found that approximately one-half of the intergenerational correlation in earnings is accounted for by parental investment in education, in particular early education, and showed that these results have important implications for education policy.
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Remittances and Microenterprises in Mexico
TL;DR: In this paper, the effect of capital constraints on investment levels of microenterprises in Mexico was examined using a survey of more than 6000 small firms located in 44 urban areas of Mexico.
References
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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.
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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
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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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