This paper aims to provide a theoretical explanation for understanding the cross-country disparity of long-run economic growth rates based on the diversity in the initial conditions. In particular, it argues that the disparity in the inequality of human capital and income, as well as the...

Much of the recent interest in the relationship between growth and distribution has focused on advanced economies and neglected issues of development and structural transformation. The purpose of this paper is to make a contribution to this gap by arguing that, even in the short-run, some of the...

We present a neo-classical model that explores the determinants of growth-inequality correlation and attempts to reconcile the seemingly conflicting evidence on the nature of the growth-inequality relationship. The initial distribution of human capital determines the long-run income distribution...

In his 2014 book, Thomas Piketty argues that wealth inequality is sharply increasing in r-g and refers to rg as ‘the central contradiction of capitalist economics', where r is asset returns and g is real income growth. To assess whether inequality is increasing in the (r-g)-gap this paper: 1)...

There is mounting evidence of a complex system of multi-directional links between fertility, productivity and inequality. The contribution of this study is a multi-country analysis of these three variables as a simultaneous system in a VECM framework using annual time series data for the UK,...

Luigi Pasinetti’s work has deeply affected modern economic theory. His papers on the Cambridge Capital Controversy are world renowned. But he has made many other contributions to the economic debates of the last half century, offering not only detailed criticisms of mainstream economic theory,...

Inclusive growth should ensure "broad-based" economic growth which characterizes the pattern of growth. Beyond simple association identification implied by the Kuznets curve and cross-country panel regression analyses, this study attempts to shed light on the dynamic causality relationship and...

The foreign aid landscape has undergone a paradigm shift in the last few decades, with changes in the behaviour of 'traditional' donors and a new focus on selectivity in aid disbursement, as well as 'new' donors and South-South co-operation playing an increasingly important role. Amidst these...

What are the long-term economic effects of a more equal distribution of wealth? We exploit variation in historical inheritance rules for land in Germany. In some German areas, inherited land was to be shared or divided equally among children, while in others land was ruled to be indivisible....