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Distributions in motion: Economic growth, inequality, and poverty dynamics

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  • Francisco Ferreira

    ()
    (The World Bank)

Abstract

The joint determination of aggregate economic growth and distributional change has been studied empirically from at least three different perspectives. A macroeconomic approach that relies on cross-country data on poverty, inequality, and growth rates has generated some interesting stylized facts about the correlations between these variables, but has not shed much light on the underlying determinants. “Meso-” and microeconomic approaches have fared somewhat better. The microeconomic approach, in particular, builds on the observation that growth, changes in poverty, and changes in inequality are simply different aggregations of information on the incidence of economic growth along the income distribution. This paper reviews the evolution of attempts to understand the nature of growth incidence curves, from the statistical decompositions associated with generalizations of the Oaxaca-Blinder method, to more recent efforts to generate “economically consistent” counterfactuals, drawing on structural, reduced-form, and computable general equilibrium models.

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Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 183.

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Length: 34 pages
Date of creation: 2010
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Handle: RePEc:inq:inqwps:ecineq2010-183

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Keywords: Poverty and inequality dynamics; growth incidence curves.;

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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Distributions in motion: Economic growth, inequality, and poverty dynamics
    by maximorossi in NEP-LTV blog on 2010-10-18 16:23:39
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Cited by:
  1. Maurizio Bussolo & Luis F. Lopez-Calva, 2014. "Shared Prosperity : Paving the Way in Europe and Central Asia," World Bank Publications, The World Bank, number 17696, August.
  2. Essama-Nssah, B., 2012. "Identification of sources of variation in poverty outcomes," Policy Research Working Paper Series 5954, The World Bank.
  3. V. Peragine & F. Palmisano & P. Brunori, 2011. "Economic growth and equality of opportunity," series, Dipartimento di Scienze Economiche e Metodi Matematici - Università di Bari 0037, Dipartimento di Scienze Economiche e Metodi Matematici - Università di Bari, revised Oct 2011.
  4. Essama-Nssah, , B. & Bassol3, Leandre & Paul, Saumik, 2010. "Accounting for heterogeneity in growth incidence in Cameroon," Policy Research Working Paper Series 5464, The World Bank.

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