Nonlinear dynamics in welfare and the evolution of world inequality
AbstractThe paper proposes a measure of countries' welfare based on individuals' lifetime utility and applies it to a large sample of countries in the period 1960-2000. Even though welfare inequality across countries appeared stable, the distribution dynamics points out the emergence of three clusters. Such tendencies to polarization shall strengthen in the future. In terms of the world population distribution, welfare inequality decreased as the result of the decline in inequality of both per capita GDP and life expectancy, but this downward trend should be reverted hereafter. Finally, a polarization pattern emerged, which is expected to further intensify in the future.
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Bibliographic InfoPaper provided by Bank of Italy, Economic Research and International Relations Area in its series Temi di discussione (Economic working papers) with number 724.
Date of creation: Oct 2009
Date of revision:
distribution of welfare; nonparametric estimation; polarization; distribution dynamics; inequality;
Other versions of this item:
- Davide Fiaschi - Marzia Romanelli, 2009. "Nonlinear Dynamics in Welfare and the Evolution of World Inequality," Discussion Papers 2009/81, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
- C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
- D30 - Microeconomics - - Distribution - - - General
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- O5 - Economic Development, Technological Change, and Growth - - Economywide Country Studies
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RePEc Biblio mentionsAs found on the RePEc Biblio, the curated bibliography for Economics:
- > Schools of Economic Thought, Epistemology of Economics > Heterodox Approaches > Thermoeconomics > The economy system and entropy minimization
- Davide Fiaschi & Imre Kondor & Matteo Marsili, 2013. "The Interrupted Power Law and The Size of Shadow Banking," Papers 1309.2130, arXiv.org, revised Oct 2013.
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