A contribution to the empirics of welfare growth

Konstantinos Vrachimis and Marios Zachariadis

The B.E. Journal of Macroeconomics, 2013, vol. 13, issue 1, 213-244

Abstract: This paper compares the determinants of economic growth and ‘full’ income growth. Our main result is that determinants may differ or have very different impact on welfare outcomes as compared to economic outcomes. Human capital plays a bigger role in determining the former, so that policies targeting human capital might have a greater effect on the welfare of societies than one would think by looking at their impact on economic growth alone. The same goes for health institutions and a number of other factors. Initial income has a greater impact on ‘full’ income growth than on real income per capita growth, implying even faster convergence than previously found, after conditioning for economic, health-related, institutions-related, and geographic cross-country differences. Overall, we strongly reject the hypothesis that the coefficient estimates for the impact of our set of explanatory variables on ‘full’ income growth is the same as for income growth. We conclude that there exist systematic differences for the impact of a number of factors on economic versus welfare growth outcomes.

Keywords: convergence, economic growth, full income, welfare, JEL Classification: O50; O11; I0 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/bejm-2012-0042 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:bejmac:v:13:y:2013:i:1:p:32:n:3

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/bejm/html

DOI: 10.1515/bejm-2012-0042

Access Statistics for this article

The B.E. Journal of Macroeconomics is currently edited by Arpad Abraham and Tiago Cavalcanti

More articles in The B.E. Journal of Macroeconomics from De Gruyter
Bibliographic data for series maintained by Peter Golla ().