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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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Spatial clustering, inequality and income convergence
Mark V. Janikas,Sergio J. Rey +1 more
TL;DR: In this article, the authors examined the relationship between spatial clustering and inequality at the county scale with overall state per capita income in the US over the period 1969-2000, and provided insight into the possible relationships between inequality, clustering, and relative income levels.
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Inequality, Well-being and Institutions in Latin America and the Caribbean
TL;DR: In this article, the authors focus on the role of "institutions" in the fight against poverty and inequality, and argue that the foremost policy interventions should be in the areas of building both adequate formal institutions, as well as creating an enabling environment for the informal institutions (such as social capital) to flourish and find their own roots.
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Brother, can you spare some time? Sustaining prosperity and social inclusion in America's metropolitan regions
Chris Benner,Manuel Pastor +1 more
TL;DR: The authors examined factors associated with the length of "growth spells" for the 184 largest regions in the United States from the period 1990-2011 and found that growth duration is positively related to a number of factors one might expect, including lower levels of reliance on manufacturing and a higher proportion of the population with middle education levels.
Efeitos do metrô sobre a especialização setorial e funcional na área urbana de Salvador
TL;DR: In this paper, the authors evaluate the effect of the subway transportation system in the city of Salvador-BA on the establishment of establishments and the sectorial and functional specialization in the areas that circumscribe the location of line 1 stations.
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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.
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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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