Inequality, Growth, and Overtaking

Inequality, Growth, and Overtaking

This research develops a theory about the role of inequality in the overtaking of growth performance across countries. The theory captures two opposing effects of inequality on factor accumulation and suggests that the qualitative change in their combined effect is a prime cause of overtaking. Due to the initial dominance of the positive effect of inequality, a less egalitarian economy undergoe...

Land inequality and the origin of divergence and overtaking in the growth process: Theory and evidence

This research suggests that the distribution of land within and across countries affected the nature of the transition from an agrarian to an industrial economy generating diverging growth patterns across countries. Land abundance, which was beneficial in early stages of development, generated in later stages a hurdle for human capital accumulation and economic growth among countries in which l...

Inequality, Growth, and Investment

Inequality, debt and growth

Foreword Like most economists, I internalised very early on in my career the concept of the "equity-efficiency tradeoff"; the idea that policy measures, such as progressive taxation or means-tested welfare benefits, that reduced income inequality would, because of their negative impact on incentives, be likely to reduce labour supply, effort and ultimately economic growth. At a theoretical leve...

Inequality , Growth , and Democracy

1 4 5 Inter-American Development Bank. Facing Up to Inequality in Latin America. Washington, D.C.: Distributed by the Johns Hopkins University Press for the Inter-American Development Bank, 1998,204 pp. Dani Rodrik. The New Global Economy and Developing Countries: Making Openness Work. Washington, D.C.: Overseas Development Council, 1999,168 pp. Vito Tanzi and Ke-young Chu, eds. Income Distribu...