Status Aspirations, Wealth Inequality, and Economic Growth

Wealth Inequality, Wealth Constraints and Economic Performance

It is well known that if costlessly enforceable contracts regulate all of the actions of economic actors that a ect the well being of others, competitive equilibria are Pareto e cient regardless of the distribution of wealth. However where actions such as risk taking and hard work are not subject to such contracts, the assignment of residual claimancy over income streams and control over assets...

Economic inequality and economic growth

The paper enquires into the relationship between economic inequality and economic growth, but different from others, it also studies the relationship between inequality and economic growth in the situation where consideration of effect of factor movement is included. The paper tends to answer the questions such as whether inequality should be eradicated completely. Panel data models are used fo...

Aspirations and Inequality

The premise of this paper is twofold. First, people’s aspirations for their future wellbeing (or that of their children) affect their incentives to invest. Second, the experiences of others help shape one’s aspirations. This paper marries a model of aspirations-based choice with a simple theory of aspirations formation to study the relationship between aspirations and the distribution of income...

Inequality, Economic Growth and Economic Performance

Inequality, Redistribution, and Economic Growth

This paper provides a critical review of the recent literature on inequality and growth. After discussing historical and more recent distributional trends as well as empirical evidence on the relationship between inequality and growth, I focus on recent explanations of the inequality-growth puzzle. I consider both the impact of the functional and the personal distribution on long-run growth rat...