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Saturday, February 20, 2010

Growth & Poverty




In the 1950s, Simon Kuznets had assumed the existence of a general relationship between growth and inequality (Kuznets curve), which have risen first, then decreases when income is high enough. Empirical studies have largely successive invalidated this assumption and, as a first approximation, the growth is neutral with respect to inequality.

In a study published empirical famous for the World Bank, David Dollar and Art Kraay concluded that incomes of the poor (lowest quintile) increased proportionately with average incomes, so whatever happens all the time periods and countries

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