IDEAS home Printed from https://ideas.repec.org/p/idb/brikps/6069.html
   My bibliography  Save this paper

Why Low Inequality Spurs Growth: Savings and Investment by the Poor

Author

Listed:
  • Birdsall, Nancy
  • Pinckney, Thomas C.
  • Sabot, Richard H.

Abstract

This paper discusses the ways in which macroeconomic developments can put stress on banks, and in extreme cases lead to banking crises. There are many ways in which this can occur, and no specific mechanism is endorsed. These macroeconomic causes of bank vulnerability and crisis have important implications for regulatory regimes, and for macroeconomic policy itself. Much of the discussion emphasizes the need to set monetary policy with an eye on the state of the domestic banking system.

Suggested Citation

  • Birdsall, Nancy & Pinckney, Thomas C. & Sabot, Richard H., 1996. "Why Low Inequality Spurs Growth: Savings and Investment by the Poor," IDB Publications (Working Papers) 6069, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:6069
    as

    Download full text from publisher

    File URL: https://publications.iadb.org/publications/english/document/Why-Low-Inequality-Spurs-Growth-Savings-and-Investment-by-the-Poor.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Rosenzweig, Mark R & Wolpin, Kenneth I, 1993. "Credit Market Constraints, Consumption Smoothing, and the Accumulation of Durable Production Assets in Low-Income Countries: Investment in Bullocks in India," Journal of Political Economy, University of Chicago Press, vol. 101(2), pages 223-244, April.
    2. Bruton, Henry J., 1985. "The search for a development economics," World Development, Elsevier, vol. 13(10-11), pages 1099-1124.
    3. Bhalla, Surjit S., 1978. "The role of sources of income and investment opportunities in rural savings," Journal of Development Economics, Elsevier, vol. 5(3), pages 259-281, September.
    4. Clarke, George R. G., 1995. "More evidence on income distribution and growth," Journal of Development Economics, Elsevier, vol. 47(2), pages 403-427, August.
    5. Paxson, Christina H, 1992. "Using Weather Variability to Estimate the Response of Savings to Transitory Income in Thailand," American Economic Review, American Economic Association, vol. 82(1), pages 15-33, March.
    6. Alesina, Alberto & Perotti, Roberto, 1994. "The Political Economy of Growth: A Critical Survey of the Recent Literature," The World Bank Economic Review, World Bank, vol. 8(3), pages 351-371, September.
    7. Deaton, Angus, 1992. "Understanding Consumption," OUP Catalogue, Oxford University Press, number 9780198288244, Decembrie.
    8. Jacoby, Hanan G, 1994. "Borrowing Constraints and Progress through School: Evidence from Peru," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 151-160, February.
    9. Alderman, Harold & Garcia, Marito, 1993. "Poverty, household food security, and nutrition in rural Pakistan:," Research reports 96, International Food Policy Research Institute (IFPRI).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Thi Thu Hoai Dang, 2019. "Does Horizontal Inequality Matter in Vietnam?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(3), pages 943-956, October.
    2. Dang Thi Thu Hoai, 2017. "Group-based inequalities: The case of Vietnam," WIDER Working Paper Series wp-2017-18, World Institute for Development Economic Research (UNU-WIDER).
    3. Mark A. McCoon, 2015. "Determinants of Latin America’s Overreliance on International Trade Taxation," Accounting and Finance Research, Sciedu Press, vol. 4(4), pages 1-60, November.
    4. Dang Thi Thu Hoai, 2017. "Group-based inequalities: The case of Vietnam," WIDER Working Paper Series 018, World Institute for Development Economic Research (UNU-WIDER).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nancy Birdsall & Thomas C. Pinckney & Richard H. Sabot, 1996. "¿Por qué poca desigualdad fomenta el crecimiento: el ahorro y la inversión de los pobres," Research Department Publications 4035, Inter-American Development Bank, Research Department.
    2. Nancy Birdsall & Thomas C. Pinckney & Richard H. Sabot, 1996. "Why Low Inequality Spurs Growth: Savings and Investment by the Poor," Research Department Publications 4034, Inter-American Development Bank, Research Department.
    3. Kazianga, Harounan, 2012. "Income Risk and Household Schooling Decisions in Burkina Faso," World Development, Elsevier, vol. 40(8), pages 1647-1662.
    4. Alderman, Harold, 1996. "Saving and economic shocks in rural Pakistan," Journal of Development Economics, Elsevier, vol. 51(2), pages 343-365, December.
    5. Asli Demirgüç-Kunt & Ross Levine, 2009. "Finance and Inequality: Theory and Evidence," Annual Review of Financial Economics, Annual Reviews, vol. 1(1), pages 287-318, November.
    6. Kazianga, Harounan & Udry, Christopher, 2006. "Consumption smoothing? Livestock, insurance and drought in rural Burkina Faso," Journal of Development Economics, Elsevier, vol. 79(2), pages 413-446, April.
    7. Skoufias, Emmanuel, 2004. "Consumption smoothing during the economic transition in Bulgaria," Journal of Comparative Economics, Elsevier, vol. 32(2), pages 328-347, June.
    8. Jeffrey A. Flory, 2011. "Micro-Savings & Informal Insurance in Villages: How Financial Deepening Affects Safety Nets of the Poor, A Natural Field Experiment," Working Papers 2011-008, Becker Friedman Institute for Research In Economics.
    9. Zimmerman, Frederick J. & Carter, Michael R., 2003. "Asset smoothing, consumption smoothing and the reproduction of inequality under risk and subsistence constraints," Journal of Development Economics, Elsevier, vol. 71(2), pages 233-260, August.
    10. Besley, Timothy, 1995. "Savings, credit and insurance," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 36, pages 2123-2207, Elsevier.
    11. Somville, Vincent & Vandewalle, Lore, 2023. "Access to banking, savings and consumption smoothing in rural India," Journal of Public Economics, Elsevier, vol. 223(C).
    12. Ravallion, Martin, 2003. "Targeted transfers in poor countries : revisiting the tradeoffs and policy options," Policy Research Working Paper Series 3048, The World Bank.
    13. Zeller, Manfred, 1999. "Towards Enhancing the Role of Microfinance for Safety Nets of the Poor," Discussion Papers 280263, University of Bonn, Center for Development Research (ZEF).
    14. Stefan Dercon & Pramila Krishnan, 2000. "In Sickness and in Health: Risk Sharing within Households in Rural Ethiopia," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 688-727, August.

    More about this item

    Keywords

    investment; savings;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idb:brikps:6069. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Felipe Herrera Library (email available below). General contact details of provider: https://edirc.repec.org/data/iadbbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.