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The geometry of growth: how wealth distribution patterns predict economic development

Author

Listed:
  • Arie Jacobi

    (Ono Academic College
    Peres Academic Center)

  • Joseph Tzur

    (Ruppin Academic Center)

Abstract

This study presents an in-depth exploration of the intricate relationship between wealth distribution patterns and a nation's economic development trajectory. Leveraging the characteristics of the Burr distribution, we meticulously analyzed the wealth per adult across a broad spectrum of countries. Our findings unequivocally establish that the geometric patterns of wealth distribution are inextricably linked to a country’s development status. In higher-development contexts, a sharper L-shaped wealth distribution emerges. Conversely, in less developed environments, wealth distribution gravitates towards a unimodal pattern. Notably, the research demonstrates that all highly developed and the majority of developed economies predominantly exhibit an L-shaped wealth distribution. The implications of these findings are profound, offering insights into how wealth disparities influence a myriad of economic, social, and political factors. By understanding these nuances, policymakers and stakeholders can better navigate the complex interplay between wealth distribution and broader economic strategies, ultimately steering nations toward sustainable and inclusive growth.

Suggested Citation

  • Arie Jacobi & Joseph Tzur, 2024. "The geometry of growth: how wealth distribution patterns predict economic development," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 14(2), pages 301-337, June.
  • Handle: RePEc:spr:eurase:v:14:y:2024:i:2:d:10.1007_s40822-024-00261-3
    DOI: 10.1007/s40822-024-00261-3
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