Inequality and Growth PDF Download

Author: Theo S. Eicher
Publisher: MIT Press
ISBN: 0262050692
Category : Economic development
Languages : en
Pages : 343

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Book Description
Essays exploring the relationship between economic growth and inequality and the implications for policy makers.

Author: Philip Keefer
Publisher: World Bank Publications
ISBN:
Category : Crecimiento economico
Languages : en
Pages : 44

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Book Description
One strand of research argues that polarized societies find it difficult to reach political consensus on appropriate responses to crises. Another strand focuses on redistribution, asking whether income inequality stifles growth by increasing political incentives to redistribute. Which is right?

Author: Stephan Haggard
Publisher: Princeton University Press
ISBN: 9780691003948
Category : Business & Economics
Languages : en
Pages : 380

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Book Description
This is a collection of essays offering comparative analysis of the divergent experiences of developing countries responding to economic crises by adopting macroeconomic stabilization and structural adjustment policies.

Author: Torsten Persson
Publisher:
ISBN:
Category : Economic development
Languages : en
Pages : 62

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Book Description
Is inequality harmful for growth? We suggest that it is. To summarize our main argument: in a society where distributional conflict is more important, political decisions are more likely to produce economic policies that allow private individuals to appropriate less of the returns to growth promoting activities, such as accumulation of capital and productive knowledge. In the paper we first formulate a theoretical model that formally captures this idea. The model has a politico-economic equilibrium, which determines a sequence of growth rates depending on structural parameters, political institutions, and initial conditions. We then confront the testable empirical implications with two sets of data. A first data set pools historical evidence-which goes back to the mid 19th century-from the US and eight European countries. A second data set contains post-war evidence from a broad cross-section of developed and less developed countries. In both samples we find a statistically significant and quantitatively important negative relation between inequality and growth. After a comprehensive sensitivity analysis, we conclude that our findings are not distorted by measurement error, reverse causation, hetroskedasticity, or other econometric problems.

Author: Mr.Jonathan David Ostry
Publisher: International Monetary Fund
ISBN: 1484397657
Category : Business & Economics
Languages : en
Pages : 30

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Book Description
The Fund has recognized in recent years that one cannot separate issues of economic growth and stability on one hand and equality on the other. Indeed, there is a strong case for considering inequality and an inability to sustain economic growth as two sides of the same coin. Central to the Fund’s mandate is providing advice that will enable members’ economies to grow on a sustained basis. But the Fund has rightly been cautious about recommending the use of redistributive policies given that such policies may themselves undercut economic efficiency and the prospects for sustained growth (the so-called “leaky bucket” hypothesis written about by the famous Yale economist Arthur Okun in the 1970s). This SDN follows up the previous SDN on inequality and growth by focusing on the role of redistribution. It finds that, from the perspective of the best available macroeconomic data, there is not a lot of evidence that redistribution has in fact undercut economic growth (except in extreme cases). One should be careful not to assume therefore—as Okun and others have—that there is a big tradeoff between redistribution and growth. The best available macroeconomic data do not support such a conclusion.

Author: Ms. Valerie Cerra
Publisher: International Monetary Fund
ISBN: 1513572660
Category : Business & Economics
Languages : en
Pages : 54

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Book Description
Is there a tradeoff between raising growth and reducing inequality and poverty? This paper reviews the theoretical and empirical literature on the complex links between growth, inequality, and poverty, with causation going in both directions. The evidence suggests that growth can be effective in reducing poverty, but its impact on inequality is ambiguous and depends on the underlying sources of growth. The impact of poverty and inequality on growth is likewise ambiguous, as several channels mediate the relationship. But most plausible mechanisms suggest that poverty and inequality reduce growth, at least in the long run. Policies play a role in shaping these relationships and those designed to improve equality of opportunity can simultaneously improve inclusiveness and growth.

Author: Eric M. Uslaner
Publisher: Oxford University Press
ISBN: 0190274816
Category : Political Science
Languages : en
Pages : 753

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Book Description
This volume explores the foundations of trust, and whether social and political trust have common roots. Contributions by noted scholars examine how we measure trust, the cultural and social psychological roots of trust, the foundations of political trust, and how trust concerns the law, the economy, elections, international relations, corruption, and cooperation, among myriad societal factors. The rich assortment of essays on these themes addresses questions such as: How does national identity shape trust, and how does trust form in developing countries and in new democracies? Are minority groups less trusting than the dominant group in a society? Do immigrants adapt to the trust levels of their host countries? Does group interaction build trust? Does the welfare state promote trust and, in turn, does trust lead to greater well-being and to better health outcomes? The Oxford Handbook of Social and Political Trust considers these and other questions of critical importance for current scholarly investigations of trust.

Author: Dennis C. Mueller
Publisher: New Haven : Yale University Press
ISBN:
Category : Comparative economics
Languages : en
Pages : 304

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Author: Hidekuni Washida
Publisher: Routledge
ISBN: 1351797980
Category : Social Science
Languages : en
Pages : 259

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Book Description
The election on 9 May 2018 ended six decades of rule by the ruling coalition in Malaysia (Barisan Nasional or BN, formerly the Alliance). Despite this result, the BN’s longevity and resilience to competition is remarkable. This book explores the mechanisms behind the emergence, endurance, fight for survival and decline of the party’s dominance. Using a systematic analysis of key resources (budgets, posts, and seats), Washida challenges the conventional argument that a punitive threat to exclude opposition supporters from distributive benefits sustained the loyalty of the masses as well as the elites. He also calls into question whether the mere existence of party organization in and of itself enables leaders to credibly commit to power-sharing. Instead he posits a theory of mobilization agency, in which a party leader needs to design an effective incentive mechanism. In addition, he explains how the BN had manufactured legislative dominance by tactical gerrymandering and malapportionment. The insights drawn from the Malaysian case can help deepen our understanding of the rise and fall of authoritarian parties and distributive politics in general.

Author: Alberto Alesina
Publisher:
ISBN:
Category : Economic development
Languages : en
Pages : 68

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Book Description
This paper studies the relationship between political conflict and economic growth in a simple model of endogenous growth with distributive conflicts. We study both the case of two "classes" (workers and capitalists) and the case of a continuum distribution of agents, characterized by different capital/labor shares. We establish several results concerning the relationship between the political influence of the two groups and the level of taxation, public investment, redistribution of income and growth. For example, it is shown that policies which maximize growth are optimal only for a government that cares only about the "capitalists." Also, we show that in a democracy (where the "median voter theorem' applies) the rate of taxation is higher and the rate of growth lower, the more unequal is the distribution of wealth We present empirical results consistent with these implications of the model.