POSC 3616 Lecture Notes - Lecture 11: Gini Coefficient, Poverty Trap, Informal Sector
8 Mar 2016
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Document Summary
The rest of the world is actually becoming more unequal. Measuring global inequality: between country (one country, one vote, between country, weighted by population, global population (one person, one vote, we see more inequality between rich and poor countries. It depends on what government policies there are. (asimogu, Berg: is there a tradeoff between equity and efficiency, when you have high levels of inequality, it gives you an incentive to go to the market and work, what is berg"s finding, argument: equality can contribute to growth. Short run inequality can increase growth, but this is unsustainable. Long run sustainable growth with low inequality: problems with this argument? a. If you"re thinking about the relationship between two variables, there"s always some kind of circular effect and the possibility for other factors to be playing a role as well. Why does this matter: inequality and growth, negative (increase growth decrease inequality, positive (increase growth increase inequality)
