This paper investigates the long-run nexus between wealth inequality and aggregate output using a DSGE model in which wealth inequality endogenously affects individual entrepreneurship incentives, thereby influencing aggregate output. Our model passes the indirect inference test against the UK...

This paper uses a vulnerability-based approach to analyze the evolution of the middle class in Europe between 2005-08 and 2015-18. The analysis reveals that, on average, the income level needed to ensure a low probability of falling into poverty-also understood as the vulnerability...

Karnataka, one of India's most water-scarce states, has a significant challenge. Its agricultural and economic growth aspirations will lead to an estimated 60 percent increase in water demand by 2030. Karnataka will be unable to meet this demand unless it focuses on a state-driven comprehensive...

This paper examines the main features of real growth per capita of Sub-Saharan Africa over the past six decades, before uncovering the sources of growth-including those of growth miracles. Three distinct growth phases before the recent "lost decade" are observed. The swinging pattern of income...

This paper reviews the impact of financial inclusion on economic development outcomes. It highlights the benefits of financial inclusion, including greater savings, improved resilience to economic shocks, and higher levels of economic empowerment, among others. It looks deeper into both the...