EconPapers    
Economics at your fingertips  
 

Inequality and growth: Some welfare calculations

Juan Cordoba () and Genevieve Verdier ()

Journal of Economic Dynamics and Control, 2008, vol. 32, issue 6, 1812-1829

Abstract: The main lotteries individuals face during their lifetime are country and family of birth. How much consumption growth would a newborn sacrifice to avoid these lotteries? We find that he may be willing to sacrifice a large fraction, if not all, to avoid them. Critical elements for the results are time discounting and risk aversion. Both reduce the effect of growth on welfare while risk aversion increases the benefits of more equal outcomes. Another key factor is the staggering size of risk at birth. Our calculations suggest a research agenda that treats growth and inequality as priorities.

Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (8) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165-1889(07)00165-0
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Inequality and Growth: Some Welfare Calculations (2010)
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:eee:dyncon:v:32:y:2008:i:6:p:1812-1829

Access Statistics for this article

Journal of Economic Dynamics and Control is currently edited by J. Bullard, C. Chiarella, H. Dawid, C. H. Hommes, P. Klein and C. Otrok

More articles in Journal of Economic Dynamics and Control from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2018-09-16
Handle: RePEc:eee:dyncon:v:32:y:2008:i:6:p:1812-1829