Countries with greater income inequality also tend to have less intergenerational mobility. This relationship, as referred by Krueger (2012), is called “The Great Gatsby Curve.” Criticisms on this curve have brought to notice several limitations of previous studies: a few number of...

This chapter argues that in countries with well-functioning democracies most individuals should be “content” with the underlying income distribution. The authors derive this result from James Buchanan’s notion of a “fiscal constitution.” The authors test this hypothesis using data from...

Rising incomes in China have not led to a smaller degree of undernutrition as measured by percentage of population below calorie and protein recommended daily allowances. The weak relationship between income and nutrition is further demonstrated by our income elasticity estimates for calories...