Distributions in motion: economic growth, inequality, and poverty dynamics
AbstractThe 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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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 5424.
Date of creation: 01 Sep 2010
Date of revision:
Rural Poverty Reduction; Achieving Shared Growth; Inequality; Services&Transfers to Poor; Economic Theory&Research;
Other versions of this item:
- Francisco Ferreira, 2010. "Distributions in motion: Economic growth, inequality, and poverty dynamics," Working Papers 183, ECINEQ, Society for the Study of Economic Inequality.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-09-25 (All new papers)
- NEP-DEV-2010-09-25 (Development)
- NEP-FDG-2010-09-25 (Financial Development & Growth)
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.:
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- 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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