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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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Dissertation
Cost-benefit analysis for global environmental issues with a case study of biodiversity conservation in Madagascar
TL;DR: In this article, the authors investigated the use of cost-benefit analysis (CBA) in the context of climate change and biodiversity loss, and found that the simplifications inherent in conventional CBA can produce misleading results when applied to complex global environmental issues.
Journal ArticleDOI
Trade Policy and Export Diversification: What Should Colombia Expect from the FTA with the United States?
TL;DR: In this article, the authors assessed whether this has been the case for Colombian exports to the United States and whether an FTA with Colombia would help Colombia diversify their exports and found that lower tariffs have indeed favored exports of new products from Colombia.
A general purpose technology explains the Solow paradox and wage inequality
Bas Jacobs,Richard Nahuis +1 more
TL;DR: The authors analyzed the consequences of general purpose technology (GPT) on output, productivity, and wages of skilled and unskilled workers, and found that a GPT led to an increasing skill premium, a fall in the real wages of unskilled, and a slowing down of economic growth.
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Whither resilient regions? equity, growth and community
Chris Benner,Manuel Pastor +1 more
TL;DR: A growing body of research has been suggesting that social equity may contribute to economic growth and resilience at a metropolitan scale, but there is limited research on the underlying mechanism of social equity.
References
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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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