Showing 1 - 10 of 126
This paper surveys the empirical literature on the association between growth on inequality in less developed countries …, with a particular emphasis on labor market inequality. Cross-country studies failed to find a clear link from growth to … inequality increases with growth. The paper argues that the methodologies used in many of the empirical applications, designed to …
Persistent link: https://www.econbiz.de/10005405822
partly to the redistributive effect of education spending. In the model income inequality and growth depend in an inverted U … requires more resources, which lowers pre-tax and post-tax income inequality as well as growth. Using consistently defined … inequality in rich countries. It is argued that using some unadjusted inequality measures in growth regressions may yield …
Persistent link: https://www.econbiz.de/10005405824
We argue that with interdependent utility functions growth can lead to a decline in total welfare of a society if the … gains from growth are sufficiently unequally distributed in the presence of negative externalities, i.e., envy. …
Persistent link: https://www.econbiz.de/10005405935
dramatic drop in cooperation (and growth), when inequality is increased by a selfserving dictator. No such effect is observed … adverse growth effect of the interaction between the degree and the genesis of inequality. We conclude that economies giving … equal opportunities to all are not likely to suffer retarded growth due to inequality in the way economies with self …
Persistent link: https://www.econbiz.de/10005406372
We study the interplay of inequality and trust in a dynamic game, in which trust increases efficiency and thus allows … higher growth of the experimental economy in the future. We find that trust is initially high in a treatment starting with …
Persistent link: https://www.econbiz.de/10005416497
inequality are gradual and cumulative. In case of a complete liberalization, the world average level of GDP per worker increases … by 20 percent in the short-run, and by more than 55 percent after 50 years. The world average index of inequality … identifying assumptions. We also analyze partial liberalization shocks: efficiency and inequality effects are roughly proportional …
Persistent link: https://www.econbiz.de/10010736743
interrelationships between inequality and economic growth. This paper develops a simple model to establish that the change in income …, inequality and growth bear a non-linear relationship: for low values of inequality, economic growth rate is an inverted U … result, the relationship between growth and inequality can take the form of a wave. This simple theoretical model is a …
Persistent link: https://www.econbiz.de/10010580969
Economists long considered money illusion to be largely irrelevant. Here we show, however, that money illusion has powerful effects on equilibrium selection. If we represent payoffs in nominal terms, choices converge to the Pareto inefficient equilibrium; however, if we lift the veil of money by...
Persistent link: https://www.econbiz.de/10005406033
The recent increase of interest rate spreads in Europe and their apparent detachment from underlying fundamental variables has generated a debate on multiple equilibria in the sovereign bond market (see De Grauwe and Ji (2012)). We critically evaluate this hypothesis, by pointing towards an...
Persistent link: https://www.econbiz.de/10010877653
We test the hypothesis that the government bond markets in the Eurozone are more fragile and more susceptible to self-fulfilling liquidity crises than in stand-alone countries. We find evidence that a significant part of the surge in the spreads of the PIGS countries in the Eurozone during...
Persistent link: https://www.econbiz.de/10010877763