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The inequality possibility frontier : extensions and new applications


  • Milanovic, Branko


This paper extends the Inequality Possibility Frontier approach in two methodological directions. It allows the social minimum to increase with the average income of a society, and it derives all the Inequality Possibility Frontier statistics for two other inequality measures besides the Gini. Finally, it applies the framework to contemporary data, showing that the inequality extraction ratio can be used in the empirical analysis of post-1960 civil conflict around the world. The duration of conflict and the casualty rate are positively associated with the inequality extraction ratio, that is, with the extent to which elite pushes the actual inequality closer to its maximum level. Inequality, albeit slightly reformulated, is thus shown to play a role in explaining civil conflict.

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  • Milanovic, Branko, 2013. "The inequality possibility frontier : extensions and new applications," Policy Research Working Paper Series 6449, The World Bank.
  • Handle: RePEc:wbk:wbrwps:6449

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    References listed on IDEAS

    1. Frances Stewart, 2000. "Crisis Prevention: Tackling Horizontal Inequalities," Oxford Development Studies, Taylor & Francis Journals, vol. 28(3), pages 245-262.
    2. Lindert, Peter H. & Nafziger, Steven, 2014. "Russian Inequality on the Eve of Revolution," The Journal of Economic History, Cambridge University Press, vol. 74(03), pages 767-798, September.
    3. Maddison, Angus, 2007. "Contours of the World Economy 1-2030 AD: Essays in Macro-Economic History," OUP Catalogue, Oxford University Press, number 9780199227204.
    4. Tracy Dennison & Steven Nafziger, 2011. "Micro-Perspectives on Living Standards in Nineteenth-Century Russia," Department of Economics Working Papers 2011-07, Department of Economics, Williams College.
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    Cited by:

    1. Alfani, Guido & Ryckbosch, Wouter, 2016. "Growing apart in early modern Europe? A comparison of inequality trends in Italy and the Low Countries, 1500–1800," Explorations in Economic History, Elsevier, vol. 62(C), pages 143-153.
    2. Lindgren, Mattias, 2015. "The elusive quest for the subsistence line How much does the cost of survival vary between populations?," MPRA Paper 73891, University Library of Munich, Germany.

    More about this item


    Inequality; Poverty Impact Evaluation; Services&Transfers to Poor; Economic Theory&Research; Gender and Law;

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