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Distribution, redistribution and development: where do we stand?

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  • Bourguignon, Francois

Abstract

This paper provides a short survey of the recent theoretical and the empirical literature on the existence of a negative relationship between economic inequality on one hand, and growth or economic development on the other. The emphasis of the paper is on the lessons to be drawn from these recent development for the design of redistribution policies in developing countries. It is shown, in particular, that somewhat in contradiction with what is often read, recent models do not contradict the old conventional wisdom of a tradeoff between redistribution of current real income in favor of the poorest and economic efficiency. The kind of redistribution that the recent literature calls for is of a fundamentally different nature and is still to be investigated in detail.
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Suggested Citation

  • Bourguignon, Francois, 1998. "Distribution, redistribution and development: where do we stand?," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, March.
    • Handle: RePEc:col:000090:007467
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    File URL: http://economia.uniandes.edu.co/revistadys/Articulo41_2.pdf
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    Cited by:

    1. Christophe Ehrhart, 2009. "The effects of inequality on growth: a survey of the theoretical and empirical literature," Working Papers 107, ECINEQ, Society for the Study of Economic Inequality.
    2. Giovanni Andrea Cornia & Juan Carlos Gómez-Sabaini & Bruno Martorano, 2011. "A New Fiscal Pact, Tax Policy Changes and Income Inequality: Latin America During the Last Decade," WIDER Working Paper Series wp-2011-070, World Institute for Development Economic Research (UNU-WIDER).
    3. Martner Fanta, Ricardo & Gonzales, Ivonne & Podestá, Andrea, 2013. "Políticas fiscales para el crecimiento y la igualdad," Macroeconomía del Desarrollo 5372, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    4. Thierry Tressel, 1999. "Financial Intermediation and Growth: Long Run Consequences of Capital Market Imperfections," CSEF Working Papers 20, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    5. Coutinho Diogo R., 2010. "Linking Promises to Policies: Law and Development in an Unequal Brazil," The Law and Development Review, De Gruyter, vol. 3(2), pages 3-40, May.
    6. Giovanni Andrea Cornia & Juan Carlos Gómez-Sabaini & Bruno Martorano, 2012. "A New Fiscal Pact, Tax Policy Changes and Income Inequality," Working Papers - Economics wp2012_03.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    7. Cornia, Giovanni Andrea & Martorano, Bruno, 2011. "A New Fiscal Pact, Tax Policy Changes and Income Inequality," WIDER Working Paper Series 070, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    Distribution;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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