1 / 4

The Poverty-Growth-Inequality Triangle

The Poverty-Growth-Inequality Triangle. Guanghua Wan Asian Development Bank. The Triangle. Inequality = f (growth, poverty ) => Kuznets hypothesis Poverty = f (growth, inequality) => the Datt-Ravallion decomposition (point 1)

misty
Download Presentation

The Poverty-Growth-Inequality Triangle

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Poverty-Growth-Inequality Triangle Guanghua Wan Asian Development Bank

  2. The Triangle • Inequality = f (growth, poverty) => Kuznets hypothesis • Poverty = f (growth, inequality) => the Datt-Ravallion decomposition (point 1) • Growth = f (inequality, poverty) (point 2)

  3. Point 1: The Datt-Ravallion Decomposition • Useful, but not insightful enough => saying growth is good & inequality is bad for poverty reduction means little to policy makers • What growth and what to redistribute? physical capital, information, basic services, or …. • Wan (2008), Oxford University Press

  4. Point 2: Growth-Inequality Modeling • A serious and unsettled policy issue: does inequality hurt growth and in what time horizon? • A chicken-egg problem for policy makers => Simultaneous equations modeling • Time horizon (Wan et al, JCE 2006): Short-, Medium- and Long-run • What level of inequality is good???

More Related