Despite more than four decades of planning efforts with an emphasis on balanced regional development, inter- and intra-state disparities in key indicators of quality of life in India are striking. Using Indian state- level data for the period 1960-92, the present paper examines the nature of...

This paper examines the effect of inequality on growth among the sub- national states in India. Theoretically, growth of the regional economy is driven by productive public investment in the provision of health and education services financed by a linear output tax, and the optimum tax rate is...