It was a part of the wisdom of mainstream economics that in the early stages of development inequality would rise but as growth persisted, it would, eventually, decline. Early evidence seemed to suggest that this pattern would be borne out. But, as time passed and growth persisted, inequality...

Regardless of the importance of growth, there are still some reasons to have a closer look at the “equity-growth-relation”. This will be shown in section 2. In some cases the issue of inequality might be neglected because it does not hinder but rather stimulate economic growth. The poor...