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In their famous paper on the "Big Push", Murphy, Shleifer, and Vishny (1989) show how the combination of increasing returns to scale at the firm level and pecuniary externalities can give rise to a poverty trap, thereby formalising an old idea due to Rosenstein-Rodan (1943). We develop in this...
Persistent link: https://www.econbiz.de/10011654535
of change that have governed the journey of humanity, driven the growth process, and shaped inequality across the globe … the design of effective policies that could promote economic growth and mitigate inequality. …What sparked humanity’s leap from stagnation to prosperity? What lies at the core of inequality among nations? Unified …
Persistent link: https://www.econbiz.de/10015164663
of worker. Our analysis reveals that the effects of a liberalization on human capital accumulation, income and inequality … 20 percent in the shortrun, and by more than 55 percent after 50 years. The world average index of inequality decreases … identifying assumptions. We also analyze partial liberalization shocks: efficiency and inequality effects are roughly proportional …
Persistent link: https://www.econbiz.de/10010235847
between economic growth and income inequity. We develop a simple model to establish that economic growth and inequality can …) economies are two-fold: first, we observed that for low values of economic growth, inequality and growth bear an inverted U … relationship between growth and inequality can take the form of a wave. Secondly, we examine the issue of the existence of …
Persistent link: https://www.econbiz.de/10010531112
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/10011404315
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/10011409838
growth across the globe. In a large sample of countries, equality in the distribution of income as measured by the World Bank … and by The Standardized World Income Inequality Database are seen to be correlated with economic diversification, the rule … in the World Values Survey, and democracy, all of which are good for growth as reflected in the purchasing power of per …
Persistent link: https://www.econbiz.de/10011966802
theoretical framework for the relationship between structural reforms, economic growth and income inequality. We argue that … and political constraints play crucial roles in determining the effectiveness of reforms on economic growth and income … inequality. We conclude by proposing a 7-point agenda for future research. …
Persistent link: https://www.econbiz.de/10011780603
theory involving capital and labour without neo-classical assumptions. Interestingly the growth story of the model seems to … be observationally equivalent to the Solow (1956) model of steady state growth. It can easily and effectively reflect on … critical contemporary issues without the ammunitions of a more complex neo-classical system. Trade pampers inequality all …
Persistent link: https://www.econbiz.de/10012312232
When measuring income inequality over long periods of time, accounting for population and productivity growth is … income growth than the standard measure. We apply these measures to long-term income data from the United States and find … that the U-shaped inequality trend over the past century holds up, but with important qualifications. Using measures that …
Persistent link: https://www.econbiz.de/10011939792