Distribution, redistribution and development: Where Do We Stand?
AbstractThis 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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Bibliographic InfoPaper provided by DELTA (Ecole normale supérieure) in its series DELTA Working Papers with number 98-11.
Length: 24 pages
Date of creation: 1998
Date of revision:
ECONOMIC DEVELOPMENT ; DISTRIBUTION;
Other versions of this item:
- Bourguignon, François, 1998. "Distribution, redistribution and development: where do we stand?," REVISTA DESARROLLO Y SOCIEDAD, UNIVERSIDAD DE LOS ANDES-CEDE.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
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- 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.
- 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.
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