Economic Growth, Health Economics, Labour Economics, Macroeconomics, Population Economics; Public Economics.
TI - Inequality and Growth Re-examined
by Jacob Assa
Published in Technology and Investment, Vol.3 No.1, February 2012
This paper examines the relationship between income inequality and subsequent economic growth. It builds on the model... more This paper examines the relationship between income inequality and subsequent economic growth. It builds on the model suggested by Alesina and Rodrik (1994) in which inequality works through greater demands for redistribution to slow down growth, and the idea by Ray (1998) that inequality negatively affects savings, work capacity, economic incentives, and access to and efficiency of credit and financial markets. Using an updated dataset and seven model variants, both OLS and 2SLS regressions find a strong negative effect of income inequality on future growth. The effect is considerably stronger for developing countries, but the existence or absence of democracy has no effect on either the relationship between inequality and growth or on the rate of growth itself. There is also no support for Barro’s (2008) claim that inequality impacts growth positively in developed countries.
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Seen by: and 3 moreSolutions for a cultivated planet
Full reference: Jonathan A. Foley, Navin Ramankutty, Kate A. Brauman, Emily S. Cassidy, James S. Gerber, Matt Johnston, Nathaniel D. Mueller, Christine O’Connell, Deepak K. Ray, Paul C. West, Christian Balzer, Elena M. Bennett, Stephen R. Carpenter, Jason Hill, Chad Monfreda, Stephen Polasky, Johan Rockström, John Sheehan, Stefan Siebert, David Tilman & David P. M. Zaks. (2011) Solutions for a cultivated planet. Nature. doi:10.1038/nature10452
Feeding the nine billion people anticipated to live on Earth in 2050 without exhausting the Earth's natural resources... more
Feeding the nine billion people anticipated to live on Earth in 2050 without exhausting the Earth's natural resources is possible, provided that we adopt a more sustainable food production approach.
This is the conclusion from a paper just published in Nature by an international team of scientists. The study concludes that we can feed the increasing amount of people on this planet without exhausting the world's resources if we successfully pursue sustainable food production on five key fronts: halt farmland expansion, improve crop production, more strategic use of water and nutrients, reduce food waste and dedicate croplands to direct human food production.
