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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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Evaluating the Impact of Land Redistribution: A CGE Microsimulation Application to Zimbabwe
Margaret Chitiga,Ramos Mabugu +1 more
TL;DR: In this article, a model built from a grant from the Poverty and Economic Policy (PEP) Research Network (www.676pep-net.org) was used to evaluate the performance of the model.
Growth, poverty reduction, and inequality
TL;DR: In this paper, the authors discuss the serious deficiencies in the data on national income and indicators of poverty and of growth, the mechanisms through which growth influences poverty and inequality as well as the mechanism through which poverty and inequalities influence growth and available empirical evidence.
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I acknowledge your help: capuchin monkeys' sensitivity to others' labor.
TL;DR: Results showed that operators chose the high-value food container for recipients more often than when the recipient was absent only in Equal labor condition, suggesting that capuchin monkeys are sensitive to others’ labor and actively give food to a partner who has helped them to complete a task.
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The persistence of de facto power: Elites and economic development in the US South, 1840-1960
TL;DR: The authors examined how the historical planter elite of the Southern US affected economic development at the county level between 1840 and 1960 and found that counties with a relatively wealthier planter elites before the Civil War performed significantly worse in the post-war decades and even after World War II.
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Economic Growth and Income Inequality: Evidence from Dynamic Panel Investigation
Dong Jin Lee,Jong Chil Son +1 more
TL;DR: In this paper, the effect of income inequality on economic growth using extended panel data covering a broad range of developing and developed countries was investigated using system generalized method of moments (GMM) techniques.
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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