Asset Distribution, Inequality, and Growth
With the recent resurgence of interest in equity, inequality, and growth, the possibility of a negative relationship between inequality and economic growth, has received renewed interest in the literature. Faced with the prospect that high levels o...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2000/06/437086/asset-distribution-inequality-growth http://hdl.handle.net/10986/19830 |
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okr-10986-19830 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
AGGREGATE GROWTH AGRICULTURE ANNUAL GROWTH ANNUAL GROWTH RATE ANTI-EXPORT BIAS ASSET DISTRIBUTION ASSET INEQUALITY ASSETS CAPITAL ACCUMULATION CAPITAL MARKET CAPITAL MARKETS COLLEGE EDUCATION CONDITIONAL CONVERGENCE CONSUMPTION GROWTH COUNTRY CHARACTERISTICS COUNTRY LEVEL COUNTRY REGRESSIONS COUNTRY SPECIFIC CREDIT CONSTRAINTS CREDIT MARKET CREDIT MARKET IMPERFECTIONS CREDIT RATIONING CRIME CRISES CROSS-COUNTRY COMPARISONS CROSS-COUNTRY PERSPECTIVE DATA ISSUES DATA SET DEREGULATION DESCRIPTIVE STATISTICS DEVELOPED COUNTRIES DEVELOPED ECONOMIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING COUNTRY CONTEXT DEVELOPMENT RESEARCH DIFFERENTIAL IMPACT DISTRIBUTION OF WEALTH DISTRIBUTIONAL DATA DISTRIBUTIONAL IMPLICATIONS DYNAMIC PANEL ECONOMETRIC ESTIMATES ECONOMIC EFFICIENCY ECONOMIC EXCHANGE ECONOMIC GROWTH ECONOMIC OPPORTUNITIES ECONOMIC OUTCOMES ECONOMIC POLICY ECONOMIC PROCESS EDUCATIONAL ATTAINMENT EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPIRICAL REGULARITY EMPIRICAL RELATIONSHIP EMPIRICAL STUDIES EMPIRICAL SUPPORT EQUAL DISTRIBUTION EQUILIBRIUM ERROR TERM ETHNIC HOMOGENEITY EXOGENOUS SHOCKS EXPENDITURES EXPLANATORY VARIABLES EXTERNALITY FACTOR ENDOWMENTS FINANCIAL MARKETS FIXED EFFECTS FIXED EFFECTS ESTIMATOR GDP GDP PER CAPITA GINI COEFFICIENT GINI INDEX GROWTH EQUATION GROWTH EQUATIONS GROWTH IMPACT GROWTH LITERATURE GROWTH MODELS GROWTH RATES GROWTH REGRESSIONS GROWTH SPELLS HIGH CORRELATION HIGH INEQUALITY HOUSEHOLD SURVEYS HUMAN CAPITAL IMPACT OF INEQUALITY IMPERFECT INFORMATION INCOME INCOME DISTRIBUTION INCOME DISTRIBUTION DATA INCOME INEQUALITY INCOME LEVELS INCOME REDISTRIBUTION INCOMPLETE MARKETS INDUSTRIALIZED COUNTRIES INEQUALITY INEQUALITY INDICATORS INEQUALITY MEASURES INEQUALITY-GROWTH RELATIONSHIP INSTITUTIONAL QUALITY INSURANCE INTERGENERATIONAL MOBILITY LAND INEQUALITY LAND OWNERSHIP LINK BETWEEN INEQUALITY AND GROWTH LONG-TERM GROWTH MACROECONOMIC POLICIES MARKET IMPERFECTIONS MEDIAN VOTER MINIMUM LEVEL MULTIPLE EQUILIBRIA NATIONAL ACCOUNTS NATIONAL LEVEL NEGATIVE EFFECT NEGATIVE IMPACT NEGATIVE RELATIONSHIP NEGATIVE SIGN NET EFFECT PER CAPITA INCOME POINT ESTIMATE POLICY DISCUSSION POLICY IMPLICATIONS POLICY LEVEL POLICY MAKERS POLICY MEASURES POLICY RESEARCH POLITICAL ECONOMY POLITICAL ECONOMY MODELS POOR COUNTRIES POSITIVE COEFFICIENT POSITIVE EFFECT POVERTY TRAPS PRIVATE INFORMATION PROMOTING GROWTH PROPERTY RIGHTS PUBLIC GOOD PUBLIC GOODS PUBLIC SECTOR RANDOM EFFECTS REAL GDP REDISTRIBUTIVE MEASURES REDUCED FORM EQUATION REGULATORY FRAMEWORK RESOURCE USE RURAL AREAS SAFETY NETS SCARCITY VALUE SECONDARY ENROLLMENT SECURE PROPERTY RIGHTS SERIAL CORRELATION SIGNIFICANT DIFFERENCES SIGNIFICANT IMPACT SIGNIFICANT RELATIONSHIP SOCIAL CAPITAL STANDARD DEVIATION TAX REVENUE TAXATION THEORETICAL MODELS UNEQUAL DISTRIBUTION VULNERABLE GROUPS WAGES WEALTH WEALTH DISTRIBUTION |
| spellingShingle |
AGGREGATE GROWTH AGRICULTURE ANNUAL GROWTH ANNUAL GROWTH RATE ANTI-EXPORT BIAS ASSET DISTRIBUTION ASSET INEQUALITY ASSETS CAPITAL ACCUMULATION CAPITAL MARKET CAPITAL MARKETS COLLEGE EDUCATION CONDITIONAL CONVERGENCE CONSUMPTION GROWTH COUNTRY CHARACTERISTICS COUNTRY LEVEL COUNTRY REGRESSIONS COUNTRY SPECIFIC CREDIT CONSTRAINTS CREDIT MARKET CREDIT MARKET IMPERFECTIONS CREDIT RATIONING CRIME CRISES CROSS-COUNTRY COMPARISONS CROSS-COUNTRY PERSPECTIVE DATA ISSUES DATA SET DEREGULATION DESCRIPTIVE STATISTICS DEVELOPED COUNTRIES DEVELOPED ECONOMIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING COUNTRY CONTEXT DEVELOPMENT RESEARCH DIFFERENTIAL IMPACT DISTRIBUTION OF WEALTH DISTRIBUTIONAL DATA DISTRIBUTIONAL IMPLICATIONS DYNAMIC PANEL ECONOMETRIC ESTIMATES ECONOMIC EFFICIENCY ECONOMIC EXCHANGE ECONOMIC GROWTH ECONOMIC OPPORTUNITIES ECONOMIC OUTCOMES ECONOMIC POLICY ECONOMIC PROCESS EDUCATIONAL ATTAINMENT EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPIRICAL REGULARITY EMPIRICAL RELATIONSHIP EMPIRICAL STUDIES EMPIRICAL SUPPORT EQUAL DISTRIBUTION EQUILIBRIUM ERROR TERM ETHNIC HOMOGENEITY EXOGENOUS SHOCKS EXPENDITURES EXPLANATORY VARIABLES EXTERNALITY FACTOR ENDOWMENTS FINANCIAL MARKETS FIXED EFFECTS FIXED EFFECTS ESTIMATOR GDP GDP PER CAPITA GINI COEFFICIENT GINI INDEX GROWTH EQUATION GROWTH EQUATIONS GROWTH IMPACT GROWTH LITERATURE GROWTH MODELS GROWTH RATES GROWTH REGRESSIONS GROWTH SPELLS HIGH CORRELATION HIGH INEQUALITY HOUSEHOLD SURVEYS HUMAN CAPITAL IMPACT OF INEQUALITY IMPERFECT INFORMATION INCOME INCOME DISTRIBUTION INCOME DISTRIBUTION DATA INCOME INEQUALITY INCOME LEVELS INCOME REDISTRIBUTION INCOMPLETE MARKETS INDUSTRIALIZED COUNTRIES INEQUALITY INEQUALITY INDICATORS INEQUALITY MEASURES INEQUALITY-GROWTH RELATIONSHIP INSTITUTIONAL QUALITY INSURANCE INTERGENERATIONAL MOBILITY LAND INEQUALITY LAND OWNERSHIP LINK BETWEEN INEQUALITY AND GROWTH LONG-TERM GROWTH MACROECONOMIC POLICIES MARKET IMPERFECTIONS MEDIAN VOTER MINIMUM LEVEL MULTIPLE EQUILIBRIA NATIONAL ACCOUNTS NATIONAL LEVEL NEGATIVE EFFECT NEGATIVE IMPACT NEGATIVE RELATIONSHIP NEGATIVE SIGN NET EFFECT PER CAPITA INCOME POINT ESTIMATE POLICY DISCUSSION POLICY IMPLICATIONS POLICY LEVEL POLICY MAKERS POLICY MEASURES POLICY RESEARCH POLITICAL ECONOMY POLITICAL ECONOMY MODELS POOR COUNTRIES POSITIVE COEFFICIENT POSITIVE EFFECT POVERTY TRAPS PRIVATE INFORMATION PROMOTING GROWTH PROPERTY RIGHTS PUBLIC GOOD PUBLIC GOODS PUBLIC SECTOR RANDOM EFFECTS REAL GDP REDISTRIBUTIVE MEASURES REDUCED FORM EQUATION REGULATORY FRAMEWORK RESOURCE USE RURAL AREAS SAFETY NETS SCARCITY VALUE SECONDARY ENROLLMENT SECURE PROPERTY RIGHTS SERIAL CORRELATION SIGNIFICANT DIFFERENCES SIGNIFICANT IMPACT SIGNIFICANT RELATIONSHIP SOCIAL CAPITAL STANDARD DEVIATION TAX REVENUE TAXATION THEORETICAL MODELS UNEQUAL DISTRIBUTION VULNERABLE GROUPS WAGES WEALTH WEALTH DISTRIBUTION Deininger, Klaus Olinto, Pedro Asset Distribution, Inequality, and Growth |
| relation |
Policy Research Working Paper;No. 2375 |
| description |
With the recent resurgence of interest
in equity, inequality, and growth, the possibility of a
negative relationship between inequality and economic
growth, has received renewed interest in the literature.
Faced with the prospect that high levels of inequality may
persist, and give rise to poverty traps, policymakers are
paying more attention to the distributional implications of
macroeconomic policies. Because high levels of inequality
may hurt overall growth, policymakers are exploring measures
to promote growth and equity at the same time. How the
consequences of inequality are analyzed, along with the
possible cures, depends partly on how inequality is
measured. The authors use assets (land) rather than income -
and a GMM estimator - to examine the robustness of the
relationship between inequality and growth that has been
observed in the cross-sectional literature, but has been
drawn into question by recent studies using panel
techniques. They find evidence that asset inequality - but
not income inequality - has a relatively large negative
impact on growth. They also find that a highly unequal
distribution of assets reduces the effectiveness of
educational interventions. This means that policymakers
should be more concerned about households' access to
assets, and to the opportunities associated with them, than
about the distribution of income. Long-term growth might be
improved by measures to prevent large jumps in asset
inequality - possibly irreversible asset loss because of
exogenous shocks - and by policies to facilitate asset
accumulation by the poor. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Deininger, Klaus Olinto, Pedro |
| author_facet |
Deininger, Klaus Olinto, Pedro |
| author_sort |
Deininger, Klaus |
| title |
Asset Distribution, Inequality, and Growth |
| title_short |
Asset Distribution, Inequality, and Growth |
| title_full |
Asset Distribution, Inequality, and Growth |
| title_fullStr |
Asset Distribution, Inequality, and Growth |
| title_full_unstemmed |
Asset Distribution, Inequality, and Growth |
| title_sort |
asset distribution, inequality, and growth |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2000/06/437086/asset-distribution-inequality-growth http://hdl.handle.net/10986/19830 |
| _version_ |
1764441514472112128 |
| spelling |
okr-10986-198302021-04-23T14:03:46Z Asset Distribution, Inequality, and Growth Deininger, Klaus Olinto, Pedro AGGREGATE GROWTH AGRICULTURE ANNUAL GROWTH ANNUAL GROWTH RATE ANTI-EXPORT BIAS ASSET DISTRIBUTION ASSET INEQUALITY ASSETS CAPITAL ACCUMULATION CAPITAL MARKET CAPITAL MARKETS COLLEGE EDUCATION CONDITIONAL CONVERGENCE CONSUMPTION GROWTH COUNTRY CHARACTERISTICS COUNTRY LEVEL COUNTRY REGRESSIONS COUNTRY SPECIFIC CREDIT CONSTRAINTS CREDIT MARKET CREDIT MARKET IMPERFECTIONS CREDIT RATIONING CRIME CRISES CROSS-COUNTRY COMPARISONS CROSS-COUNTRY PERSPECTIVE DATA ISSUES DATA SET DEREGULATION DESCRIPTIVE STATISTICS DEVELOPED COUNTRIES DEVELOPED ECONOMIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING COUNTRY CONTEXT DEVELOPMENT RESEARCH DIFFERENTIAL IMPACT DISTRIBUTION OF WEALTH DISTRIBUTIONAL DATA DISTRIBUTIONAL IMPLICATIONS DYNAMIC PANEL ECONOMETRIC ESTIMATES ECONOMIC EFFICIENCY ECONOMIC EXCHANGE ECONOMIC GROWTH ECONOMIC OPPORTUNITIES ECONOMIC OUTCOMES ECONOMIC POLICY ECONOMIC PROCESS EDUCATIONAL ATTAINMENT EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPIRICAL REGULARITY EMPIRICAL RELATIONSHIP EMPIRICAL STUDIES EMPIRICAL SUPPORT EQUAL DISTRIBUTION EQUILIBRIUM ERROR TERM ETHNIC HOMOGENEITY EXOGENOUS SHOCKS EXPENDITURES EXPLANATORY VARIABLES EXTERNALITY FACTOR ENDOWMENTS FINANCIAL MARKETS FIXED EFFECTS FIXED EFFECTS ESTIMATOR GDP GDP PER CAPITA GINI COEFFICIENT GINI INDEX GROWTH EQUATION GROWTH EQUATIONS GROWTH IMPACT GROWTH LITERATURE GROWTH MODELS GROWTH RATES GROWTH REGRESSIONS GROWTH SPELLS HIGH CORRELATION HIGH INEQUALITY HOUSEHOLD SURVEYS HUMAN CAPITAL IMPACT OF INEQUALITY IMPERFECT INFORMATION INCOME INCOME DISTRIBUTION INCOME DISTRIBUTION DATA INCOME INEQUALITY INCOME LEVELS INCOME REDISTRIBUTION INCOMPLETE MARKETS INDUSTRIALIZED COUNTRIES INEQUALITY INEQUALITY INDICATORS INEQUALITY MEASURES INEQUALITY-GROWTH RELATIONSHIP INSTITUTIONAL QUALITY INSURANCE INTERGENERATIONAL MOBILITY LAND INEQUALITY LAND OWNERSHIP LINK BETWEEN INEQUALITY AND GROWTH LONG-TERM GROWTH MACROECONOMIC POLICIES MARKET IMPERFECTIONS MEDIAN VOTER MINIMUM LEVEL MULTIPLE EQUILIBRIA NATIONAL ACCOUNTS NATIONAL LEVEL NEGATIVE EFFECT NEGATIVE IMPACT NEGATIVE RELATIONSHIP NEGATIVE SIGN NET EFFECT PER CAPITA INCOME POINT ESTIMATE POLICY DISCUSSION POLICY IMPLICATIONS POLICY LEVEL POLICY MAKERS POLICY MEASURES POLICY RESEARCH POLITICAL ECONOMY POLITICAL ECONOMY MODELS POOR COUNTRIES POSITIVE COEFFICIENT POSITIVE EFFECT POVERTY TRAPS PRIVATE INFORMATION PROMOTING GROWTH PROPERTY RIGHTS PUBLIC GOOD PUBLIC GOODS PUBLIC SECTOR RANDOM EFFECTS REAL GDP REDISTRIBUTIVE MEASURES REDUCED FORM EQUATION REGULATORY FRAMEWORK RESOURCE USE RURAL AREAS SAFETY NETS SCARCITY VALUE SECONDARY ENROLLMENT SECURE PROPERTY RIGHTS SERIAL CORRELATION SIGNIFICANT DIFFERENCES SIGNIFICANT IMPACT SIGNIFICANT RELATIONSHIP SOCIAL CAPITAL STANDARD DEVIATION TAX REVENUE TAXATION THEORETICAL MODELS UNEQUAL DISTRIBUTION VULNERABLE GROUPS WAGES WEALTH WEALTH DISTRIBUTION With the recent resurgence of interest in equity, inequality, and growth, the possibility of a negative relationship between inequality and economic growth, has received renewed interest in the literature. Faced with the prospect that high levels of inequality may persist, and give rise to poverty traps, policymakers are paying more attention to the distributional implications of macroeconomic policies. Because high levels of inequality may hurt overall growth, policymakers are exploring measures to promote growth and equity at the same time. How the consequences of inequality are analyzed, along with the possible cures, depends partly on how inequality is measured. The authors use assets (land) rather than income - and a GMM estimator - to examine the robustness of the relationship between inequality and growth that has been observed in the cross-sectional literature, but has been drawn into question by recent studies using panel techniques. They find evidence that asset inequality - but not income inequality - has a relatively large negative impact on growth. They also find that a highly unequal distribution of assets reduces the effectiveness of educational interventions. This means that policymakers should be more concerned about households' access to assets, and to the opportunities associated with them, than about the distribution of income. Long-term growth might be improved by measures to prevent large jumps in asset inequality - possibly irreversible asset loss because of exogenous shocks - and by policies to facilitate asset accumulation by the poor. 2014-08-28T18:19:11Z 2014-08-28T18:19:11Z 2000-06 http://documents.worldbank.org/curated/en/2000/06/437086/asset-distribution-inequality-growth http://hdl.handle.net/10986/19830 English en_US Policy Research Working Paper;No. 2375 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |