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Equity, efficiency and inequality traps: A research agenda

François Bourguignon, Francisco Ferreira and Michael Walton
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Michael Walton: John F. Kennedy School of Government - Harvard University

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Abstract: This paper discusses a research agenda that arises from unanswered questions and unresolved issues considered in the World Bank's World Development Report 2006: Equity and Development. After formalizing the key concepts of equity; equality of opportunity; and efficiency, and proposing a definition for an equitable development policy, the paper discusses the concept of inequality traps, around which the research agenda is structured. Four broad groups of research questions are highlighted: those revolving around the measurement of inequality of opportunity and the diagnostics for the existence of an inequality trap; those dealing with the causes of inequality traps; the quantification of their efficiency costs; and those related to how institutions (including governments) evolve to overcome inequality traps.

Date: 2007-08
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Published in Journal of Economic Inequality, 2007, 5 (2), pp.235-256. ⟨10.1007/s10888-006-9042-8⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00754212

DOI: 10.1007/s10888-006-9042-8

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