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We revisit the relationship between financial development and economic growth in a panel of 52 middle income countries over the 1980-2008 period, using pooled mean group estimator in a dynamic heterogeneous panel setting. We show that financial development does not have a linear positive...
Persistent link: https://www.econbiz.de/10013054321
The paper investigates the impact of exchange rate volatility on growth in Emerging Europe and East Asia. Exchange stability has been argued to affect growth negatively as it deprives countries from the ability to react in a flexible way to asymmetric real shocks and may enhance the probability...
Persistent link: https://www.econbiz.de/10013317017
The paper examines the impact of income inequality and mobility on income redistribution in a modified median voter … model where redistributive conflict takes place both between educational groups and age-groups. The effects of inequality … inequality. We also examine the effect of the length of electoral periods on redistribution and welfare for different groups and …
Persistent link: https://www.econbiz.de/10005405748
This paper surveys the empirical literature on the association between growth on inequality in less developed countries …, with a particular emphasis on labor market inequality. Cross-country studies failed to find a clear link from growth to … inequality. Country-specific studies that focused on labor market inequality have shown that, with a few exceptions, wage …
Persistent link: https://www.econbiz.de/10005405822
In many OECD countries income inequality has risen, but surprisingly redistribution as well. The theory attributes this … partly to the redistributive effect of education spending. In the model income inequality and growth depend in an inverted U … requires more resources, which lowers pre-tax and post-tax income inequality as well as growth. Using consistently defined …
Persistent link: https://www.econbiz.de/10005405824
appears to have caused a high degree of economic inequality, and democratization in the form of franchise expansion has … between other measures of democracy, based on civil liberties and political rights, and inequality. The transition experience …
Persistent link: https://www.econbiz.de/10005405913
While standard political economy theories suggest a moderating effect of democratization on income inequality … first, that prevailing ideology may be an important determinant of inequality and, second, that the democratization effect … income groups, hence democratization may have only a negligible effect on inequality. On the other hand, in societies where …
Persistent link: https://www.econbiz.de/10005405921
We argue that with interdependent utility functions growth can lead to a decline in total welfare of a society if the gains from growth are sufficiently unequally distributed in the presence of negative externalities, i.e., envy.
Persistent link: https://www.econbiz.de/10005405935
We develop a model that allows for public goods and status signaling through charitable contributions. This model provides a unified framework in which contributions are driven both by altruism and status signaling. We use this setup to re-examine the conventional practice of rendering a...
Persistent link: https://www.econbiz.de/10005406030
pre-tax income inequality. …
Persistent link: https://www.econbiz.de/10005406276