Economic Development as Opportunity Equalization
AbstractEconomic development should be conceived of as the degree to which an economy has implemented an efficient and just distribution of economic resources. The ubiquitous measure of GDP per capita reflects a utilitarian conception of justice, where individual utility is defined as personal income, and social welfare is the average of utilities in a population. A more attractive conception of justice is opportunity-equalization. Here, a two-dimensional measure of economic development is proposed, based upon viewing individualsâ incomes as a consequence of circumstances, effort, and policy. The first dimension is the average income level of those in the society with the most disadvantaged circumstances, and the second dimension is the degree to which total income inequality is due to differential effort, as opposed to differential circumstances. This pair of numbers is computed for a set of 22 European countries. No country dominates all others on both dimensions. The two-dimensional measure induces a partial ordering of countries with respect to development.
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Bibliographic InfoPaper provided by UCLA Department of Economics in its series Levine's Bibliography with number 321307000000000445.
Date of creation: 22 Sep 2006
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Other versions of this item:
- John E. Roemer, 2006. "Economic Development as Opportunity Equalization," Cowles Foundation Discussion Papers 1583, Cowles Foundation for Research in Economics, Yale University.
- Roemer, John E., 2013. "Economic development as opportunity equalization," Policy Research Working Paper Series 6530, The World Bank.
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
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- Singh, Ashish, 2010.
"Inequality of opportunity in Indian children: the case of immunization and nutrition,"
32505, University Library of Munich, Germany.
- Ashish Singh, 2011. "Inequality of Opportunity in Indian Children: The Case of Immunization and Nutrition," Population Research and Policy Review, Springer, vol. 30(6), pages 861-883, December.
- World Bank, 2012. "Well Begun, Not Yet Done : Vietnam's Remarkable Progress on Poverty Reduction and the Emerging Challenges," World Bank Other Operational Studies 12326, The World Bank.
- Ashish Singh, 2010. "The Effect of Family Background on Individual Wages and an Examination of Inequality of Opportunity in India," Journal of Labor Research, Springer, vol. 31(3), pages 230-246, September.
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