Poverty, Voracity, and Growth

www.econstor.eu Poverty, Voracity, and Growth

The voracity effect revisited

In an influential article Tornell and Lane (1999) considered an economy, populated by multiple powerful groups, in which property rights in the formal sector are not protected. They argued that then investment in an informal sector may be optimal and set up conditions for “voracity” such that a permanent positive shock in the formal sector leads to lower economic growth. Here I show that whenev...

Voracity and Growth Reconsidered

This article investigates economic performance when enforceable property rights are missing and subsistence needs matter. It shows that if per capita income is sufficiently high, a windfall gain in productivity triggers behavior that leads to higher growth (the normal reaction). The same shock can produce voracious behavior and lower growth when faced by poor economic agents, in particular when...

The Triangular Relationship between Poverty, Inequality and Growth in Iran during the Development Plans

Expended Abstract Introduction: An issue which is often recurring in discussion on development is whether the main focus of development strategies should be on growth or on poverty and/or inequality. The goal of development strategies can be put in two statements. “First, the rapid elimination of absolute poverty, under all forms, is a meaningful goal for development Second, the reduction of a...

The Triangular Relationship between Poverty, Inequality and Growth in Iran during the Development Plans

Expended Abstract Introduction: An issue which is often recurring in discussion on development is whether the main focus of development strategies should be on growth or on poverty and/or inequality. The goal of development strategies can be put in two statements. “First, the rapid elimination of absolute poverty, under all forms, is a meaningful goal for development Second, the reduction of a...