Equity and economic growth, a theoretical and empirical study: MENA zone
AbstractIn macroeconomic literature, it is widely held that persuasion of economic growth and more equitable distribution of income (wealth) is not possible at the same time. The basic reason put forward is that to aim for more equitable distribution will reduce total savings in short and medium terms by reducing the weighted average of propensities to save of the different strata of the society. Therefore, the main objective for countries in transitional period is to have a higher economic growth rather than a fairer distribution of income. Recent developments on economic growth studies from a longer perspective and with sustainability criterion has put above idea in real jeopardy. It is shown that by paying more attention to justifiable distribution especially among different generations will promote a higher genuine savings which results in a higher rate of steady economic growth. In this research we use dynamic optimization approach (optimal control) for studying the mechanics of this regularity and test the proposition for selected MENA zone countries and then compare with some developed countries. Our ultimate goal is suggesting a fair fiscal policy to have a high economic growth compatible with a fairer distribution of wealth and income. It seems that any attempt to provide a more equitable condition, will be eventually reached to a higher capital formation, higher saving and higher output per capita in MENA region compared with selected developed countries.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Economic Modelling.
Volume (Year): 28 (2011)
Issue (Month): 1-2 (January)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/30411
Equity Economic growth Time preference Dynamic optimization MENA zone;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Peter N. Ireland, 2002.
"Implementing the Friedman Rule,"
NBER Working Papers
8821, National Bureau of Economic Research, Inc.
- Alesina, Alberto & Rodrik, Dani, 1994.
"Distributive Politics and Economic Growth,"
The Quarterly Journal of Economics,
MIT Press, vol. 109(2), pages 465-90, May.
- Alesina, Alberto F & Rodrik, Dani, 1991. "Distributive Politics and Economic Growth," CEPR Discussion Papers 565, C.E.P.R. Discussion Papers.
- Alberto Alesina & Dani Rodrik, 1991. "Distributive Politics and Economic Growth," NBER Working Papers 3668, National Bureau of Economic Research, Inc.
- Rodrik, Dani & Alesina, Alberto, 1994. "Distributive Politics and Economic Growth," Scholarly Articles 4551798, Harvard University Department of Economics.
- Perotti, Roberto, 1996. " Growth, Income Distribution, and Democracy: What the Data Say," Journal of Economic Growth, Springer, vol. 1(2), pages 149-87, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.