Academics and policy makers have long considered an adequate supply of infrastructure services to be essential for economic development. This paper reviews recent theoretical and empirical literature on the effects of infrastructure development on growth and income distribution. The theoretical...

This paper reviews analytically and empirically the links between income distribution and aggregate saving. Consumption theory brings out a number of direct channels through which income inequality can affect overall household saving — positively in most cases. However, recent...

An extensive literature on poverty traps suggests that high levels of poverty deter growth. However, a seemingly basic implication of the underlying theoretical models, namely that countries suffering from higher levels of poverty should grow less rapidly, has remained untested. A parallel...