We examine how inequality and openness interact in shaping the long-run growth prospects of developing countries. To this end, we develop a Schumpeterian growth model with heterogeneous households and non-homothetic preferences for quality. We show that inequality affects growth very differently...

This paper provides the tools and procedures for empirically implementing several dominance criteria for social welfare comparisons and broad income inequality comparisons. Dominance criteria are expressed in terms of vectors of quantile ordinates based on income shares or quantile means....

When measuring income inequality over long periods of time, accounting for population and productivity growth is important. This paper presents three alternative measures of top income shares that more explicitly account for population and income growth than the standard measure. We apply these...

In this paper we argue that a better understanding of the relationship between inequality and growth can be obtained by shifting the analysis from the space of final achievements to the space of opportunities. To this end, we introduce the Opportunity Growth Incidence Curve, that can be used to...

This paper points to flaws in Gini decompositions by income sources and population subgroups and to common pitfalls in the interpretation of decomposition results, focusing on methods within the framework of Rao (1969). We argue that within this framework Gini elasticities may provide the only...

As embodied in the concept of "inequality extraction" (Branko Milanovic), it is not possible to increase inequality (especially income inequality) in a society sustainably to levels beyond what is actually socially acceptable (and even less to levels endangering physical subsistence of parts of...

To explore the empirical validity of AK-type endogenous growth models, the long-run relation between growth and investment is examined. Contrary to Jones's (1995) findings, the broadly measured rate of investment exerts a long-run positive effect on the growth rate. This result is supported by...

We develop and estimate the steady-state growth equation of an augmented version of Romer's model of endogenous technical change that allows for population growth, human capital accumulation, diminishing returns to R&D, and technology diffusion. Estimates from international cross-section data...

We show that the choice of the welfare measure has a substantial impact on the degree of welfare-related health inequality. Combining various income and wealth measures with different health measures, we calculate 80 health concentration indices. The influence of the welfare measure is more...

We show that the choice of the welfare measure has a substantial impact on the degree of welfare-related health inequality. Combining various income and wealth measures with different health measures, we calculate 80 health concentration indices. The influence of the welfare measure is more...