Nonlinear Dynamics in Welfare and the Evolution of World Inequality
We propose a methodology to measure countries’ welfare based on the lifetime utility of individuals and apply it to a large sample of countries. In the period 1960-2000 welfare inequality across countries appears stable as the result of increasing inequality in per capita GDP and decreasing inequality in life expectancy. However, the estimated distribution dynamics of welfare points out the emergence of three clusters of countries in 2000: one composed by low-income and low-life expectancy countries (mainly sub-Saharan countries); one by low-income but medium life expectancy countries (most of the highly populated Asian and Latin American countries); and, finally, the last one by high-income and high-life expectancy countries (almost all OECD countries). Such tendencies to polarisation are expected to strengthen in the future. In terms of the world population distribution, from 1960 to 2000 welfare inequality has been decreasing as the result of the falling inequality of both per capita GDP and life expectancy; this fall is mostly explained by the outstanding performance of the highly populated countries, mainly China and India. However, the decreasing trend is expected to be reverted (at most stabilise) in the future. Finally, the estimated distribution dynamics of welfare shows the emergence of two clusters of population, already detected in the distribution of 2000; such polarisation dynamics is expected to further intensify in the future, with the possible emergence of a cluster of populations from sub-Saharan countries.
|Date of creation:||20 Apr 2009|
|Date of revision:|
|Contact details of provider:|| Postal: Via Cosimo Ridolfi, 10 - 56124 PISA|
Phone: +39 050 22 16 466
Fax: +39 050 22 16 384
Web page: http://www.ec.unipi.it
More information through EDIRC
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.:
- Gordon Anderson, 2005. "LIFE EXPECTANCY AND ECONOMIC WELFARE: THE EXAMPLE OF AFRICA IN THE 1990s," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(3), pages 455-468, 09.
- Johnson, Paul, 2003.
"A Continuous State Space Approach to “Convergence by Parts”,"
Vassar College Department of Economics Working Paper Series
54, Vassar College Department of Economics.
- Johnson, Paul A., 2005. "A continuous state space approach to "Convergence by Parts"," Economics Letters, Elsevier, vol. 86(3), pages 317-321, March.
- Steven N. Durlauf & Danny T. Quah, 1998.
"The New Empirics of Economic Growth,"
98-01-012, Santa Fe Institute.
- S Durlauf & Danny Quah, 1998. "The New Empirics of Economic Growth," CEP Discussion Papers dp0384, Centre for Economic Performance, LSE.
- Steven N. Durlauf & Danny T. Quah, 1998. "The New Empirics of Economic Growth," NBER Working Papers 6422, National Bureau of Economic Research, Inc.
- Durlauf,S.N. & Quah,D.T., 1998. "The new empirics of economic growth," Working papers 3, Wisconsin Madison - Social Systems.
- Esteban, Joan & Ray, Debraj, 1994.
"On the Measurement of Polarization,"
Econometric Society, vol. 62(4), pages 819-51, July.
- Esteban, J.M. & Ray, D., 1992. "On the Measurement of Polarization," UFAE and IAE Working Papers 171.92, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Joan-Maria Esteban & Debraj Ray, 1991. "On the Measurement of Polarization," Boston University - Institute for Economic Development 18, Boston University, Institute for Economic Development.
- Esteban, J. & Ray, D., 1993. "On the Measurement of Polarization," UFAE and IAE Working Papers 221.93, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Chotikapanich, Duangkamon & Valenzuela, Rebecca & Rao, D S Prasada, 1997. "Global and Regional Inequality in the Distribution of Income: Estimation with Limited and Incomplete Data," Empirical Economics, Springer, vol. 22(4), pages 533-46.
- Danny Quah, 1992.
"Empirical Cross-Section Dynamics in Economic Growth,"
FMG Discussion Papers
dp154, Financial Markets Group.
- Quah, Danny, 1993. "Empirical cross-section dynamics in economic growth," European Economic Review, Elsevier, vol. 37(2-3), pages 426-434, April.
- Danny Quah, 1992. "Empirical cross-section dynamics in economic growth," Discussion Paper / Institute for Empirical Macroeconomics 75, Federal Reserve Bank of Minneapolis.
- Rosen, Sherwin, 1988.
" The Value of Changes in Life Expectancy,"
Journal of Risk and Uncertainty,
Springer, vol. 1(3), pages 285-304, September.
- Sherwin Rosen, . "The Value of Changes in Life Expectancy," University of Chicago - Population Research Center 87-14, Chicago - Population Research Center.
- Gary S. Becker & Tomas J. Philipson & Rodrigo R. Soares, 2005.
"The Quantity and Quality of Life and the Evolution of World Inequality,"
American Economic Review,
American Economic Association, vol. 95(1), pages 277-291, March.
- Gary S. Becker & Tomas J. Philipson & Rodrigo R. Soares, 2003. "The Quantity and Quality of Life and the Evolution of World Inequality," NBER Working Papers 9765, National Bureau of Economic Research, Inc.
- Robert E. Hall & Charles I. Jones, 2007. "The Value of Life and the Rise in Health Spending," The Quarterly Journal of Economics, Oxford University Press, vol. 122(1), pages 39-72.
- Fiaschi, Davide & Lavezzi, Andrea Mario, 2003. " Distribution Dynamics and Nonlinear Growth," Journal of Economic Growth, Springer, vol. 8(4), pages 379-401, December.
- Ram, Rati, 2006. "State of the "life span revolution" between 1980 and 2000," Journal of Development Economics, Elsevier, vol. 80(2), pages 518-526, August.
- Douglas Gollin, 2001.
"Getting Income Shares Right,"
Department of Economics Working Papers
2001-11, Department of Economics, Williams College.
When requesting a correction, please mention this item's handle: RePEc:pie:dsedps:2009/81. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.