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Income Distribution and High-quality Growth

Income Distribution and High-quality Growth
Author: Vito Tanzi
Publisher: MIT Press
Total Pages: 448
Release: 1998
Genre: Business & Economics
ISBN: 9780262201094

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The contributors argue that there need not be a trade-off between growth and equity in the long run. However, attempts by government to influence income distribution through large-scale tax and transfer programs can have a negative impact on growth. The contrast is vivid. While the majority of people in the industrial world and some in the developing world enjoy unprecedented affluence, a far greater number of people in the low-income countries live in abject poverty. Although several developing countries are achieving rapid economic growth and poverty reduction, most formerly centrally planned countries are struggling to implement market-oriented reforms in the midst of economic deterioration and rising poverty. The paramount importance of reducing poverty worldwide is forcing economists and policymakers to look at how income distribution and economic growth interact. The essays in this volume grew out of a 1995 conference sponsored by the International Monetary Fund. The contributors are scholars and policymakers from academic institutions, governments, and international organizations. The questions discussed include: How does income distribution interact with economic growth in the short run and the long run? To what extent can government use transfer programs to increase the incomes of the poor? How can government use social programs to help the poor increase their income-earning capacity? Does distributional inequality create an obstacle to long-term poverty reduction? Alternatively, is distributional inequality a necessary means of achieving economic growth? Generally, the contributors agree that there need not be a trade-off between growth and equity in the long run. However, attempts by government to influence income distribution through large-scale tax and transfer programs can have a negative impact on growth.


Growing Unequal? Income Distribution and Poverty in OECD Countries

Growing Unequal? Income Distribution and Poverty in OECD Countries
Author: OECD
Publisher: OECD Publishing
Total Pages: 312
Release: 2008-10-21
Genre:
ISBN: 9264044191

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This report provides evidence of a fairly generalised increase in income inequality over the past two decades across OECD countries, but the timing, intensity and causes of the increase differ from what is typically suggested in the media.


Economic growth and distribution of income

Economic growth and distribution of income
Author: Harumi T. Nelson, Terry L. Roe, Xinshen Diao
Publisher: Intl Food Policy Res Inst
Total Pages: 48
Release:
Genre: Social Science
ISBN:

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Income Distribution in Macroeconomic Models

Income Distribution in Macroeconomic Models
Author: Giuseppe Bertola
Publisher: Princeton University Press
Total Pages: 439
Release: 2014-09-28
Genre: Business & Economics
ISBN: 0691164592

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This book looks at the distribution of income and wealth and the effects that this has on the macroeconomy, and vice versa. Is a more equal distribution of income beneficial or harmful for macroeconomic growth, and how does the distribution of wealth evolve in a market economy? Taking stock of results and methods developed in the context of the 1990s revival of growth theory, the authors focus on capital accumulation and long-run growth. They show how rigorous, optimization-based technical tools can be applied, beyond the representative-agent framework of analysis, to account for realistic market imperfections and for political-economic interactions. The treatment is thorough, yet accessible to students and nonspecialist economists, and it offers specialist readers a wide-ranging and innovative treatment of an increasingly important research field. The book follows a single analytical thread through a series of different growth models, allowing readers to appreciate their structure and crucial assumptions. This is particularly useful at a time when the literature on income distribution and growth has developed quickly and in several different directions, becoming difficult to overview.


Inequality and Growth

Inequality and Growth
Author: Theo S. Eicher
Publisher: MIT Press
Total Pages: 343
Release: 2007-01-26
Genre: Business & Economics
ISBN: 0262550644

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Even minute increases in a country's growth rate can result in dramatic changes in living standards over just one generation. The benefits of growth, however, may not be shared equally. Some may gain less than others, and a fraction of the population may actually be disadvantaged. Recent economic research has found both positive and negative relationships between growth and inequality across nations. The questions raised by these results include: What is the impact on inequality of policies designed to foster growth? Does inequality by itself facilitate or detract from economic growth, and does it amplify or diminish policy effectiveness? This book provides a forum for economists to examine the theoretical, empirical, and policy issues involved in the relationship between growth and inequality. The aim is to develop a framework for determining the role of public policy in enhancing both growth and equality. The diverse range of topics, examined in both developed and developing countries, includes natural resources, taxation, fertility, redistribution, technological change, transition, labor markets, and education. A theme common to all the essays is the importance of education in reducing inequality and increasing growth.


Redistribution, Inequality, and Growth

Redistribution, Inequality, and Growth
Author: Mr.Jonathan David Ostry
Publisher: International Monetary Fund
Total Pages: 30
Release: 2014-02-17
Genre: Business & Economics
ISBN: 1484397657

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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.


Causes and Consequences of Income Inequality

Causes and Consequences of Income Inequality
Author: Ms.Era Dabla-Norris
Publisher: International Monetary Fund
Total Pages: 39
Release: 2015-06-15
Genre: Business & Economics
ISBN: 1513547437

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This paper analyzes the extent of income inequality from a global perspective, its drivers, and what to do about it. The drivers of inequality vary widely amongst countries, with some common drivers being the skill premium associated with technical change and globalization, weakening protection for labor, and lack of financial inclusion in developing countries. We find that increasing the income share of the poor and the middle class actually increases growth while a rising income share of the top 20 percent results in lower growth—that is, when the rich get richer, benefits do not trickle down. This suggests that policies need to be country specific but should focus on raising the income share of the poor, and ensuring there is no hollowing out of the middle class. To tackle inequality, financial inclusion is imperative in emerging and developing countries while in advanced economies, policies should focus on raising human capital and skills and making tax systems more progressive.


Economic Development, Poverty, And Income Distribution

Economic Development, Poverty, And Income Distribution
Author: William Loehr
Publisher: Routledge
Total Pages: 322
Release: 2019-04-10
Genre: Business & Economics
ISBN: 0429706618

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The increasing inequality and poverty that seem inevitably to accompany economic growth in developing countries have become more and more evident in recent years. The search for development paths that lead to growth with equality—all too difficult to find—is now an area of central concern for development economists. One result of their concern is this volume, in which internationally known representatives of a range of disciplines address themselves to ways in which growth with equity might be successfully achieved. The book begins with both empirical and theoretical background to the development issues involved, and with an overview of the experience of the international development assistance community. focuses on operational definitions of the poor that will permit analytical, policy-oriented research to lead to useful conclusions. Specific concern is expressed for small-business owners, women, peasants, and recent migrants from rural to urban areas. The basic question, of course, is what can be done about poverty and inequality. includes suggestions for specific measures and provides a comprehensive comparison across a wide range of policy options. The book does not solve the problem, but it does point to directions that promise a reasonably high probability of success. And throughout, suggestions are made for the kind of interdisciplinary research required to raise that probability even further.


Growth With Inequality: An International Comparison On Income Distribution

Growth With Inequality: An International Comparison On Income Distribution
Author: Jinjun Xue
Publisher: World Scientific
Total Pages: 402
Release: 2012-07-13
Genre: Business & Economics
ISBN: 9814401714

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In the era of globalization and liberalization, the world is enjoying high growth as well as suffering from the ill-effects of unequal distribution of its economic outcomes. The activities of anti-government demonstrations in China and across the world via the Occupy Wall Street Movement highlight that inequality has become an international phenomenon. It is apparent in both poor countries under authoritarianism and rich countries governed by a democratic regime. Thus, inequality has become not only a hurdle to development but also a threat to social and political stability. The spread of the Jasmine Revolution across parts of North Africa and the Arab Spring are illustrative of what can happen under certain circumstances.This book confirms the inconsistencies between high growth and increasing inequality via a series of case studies across 11 countries, numerous regions, and OECD members. Many of the case studies draw upon original household surveys. Our findings indicate the seriousness of income inequality, explore factors that have caused the inequality and analyze their economic and social consequences.The book raises, and deals with, three key questions: (1) Can high growth reduce inequality gradually? (2) Can government intervention be effective in equalizing income distribution? (3) Is the income disparity an engine for, or an obstacle of, high growth?