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While much scholarly attention has been paid to ways in which metropolitan areas are politically structured and operated to achieve a dual goal, economic growth, and equality, relatively less is known about the complex relationship between metropolitan governance structures and growth–inequality dynamics. This study investigates how and to what extent metropolitan governance structures shape regional economic growth and inequality trajectories using data for 267 US metropolitan areas from 1990 to 2010. Findings from a two-stage least squares regression analysis suggest that economic growth is associated with governance structures in a nonlinear fashion, with relatively more rapid growth rates in both highly centralized and decentralized metropolitan areas. However, these regions are also found to experience a larger increase in income inequality, indicating an important trade-off to be considered carefully in exploring ways to reform existing governance settings. These findings further suggest that the so-called growth–inequality trade-off may exist not only in their direct interactions but through their connections via governance or other variables.

Since the Second World War the world has seen an economic growth spurt unprecedented in history. Economic growth is a necessary but not sufficient condition for improving human development, or in other words, economic growth is an important pre-requisite for the ultimate goal of human well-being. The four empirical essays of this book add to the general debate concerning dynamics of growth, poverty and inequality over the past 40 years from four different dimensions. The first chapter analyses the dynamics of the cross-country per capita income distribution and the existence of convergence clubs. The second chapter focuses on the dynamic development of the global income distribution and resulting implications for global income convergence, poverty reduction, pro-poor growth and the evolution of global inequality within and between countries. The third chapter investigates the deterministic relationship between ethnic fractionalisation and growth in a macro cross-country regression framework. Finally, the fourth chapter adds to the understanding of micro determinants of growth and poverty in the context of Indonesia.

The relationship between growth, inequality, and poverty has
been a moot point. On the one hand growth is considered central or the
best course to reduce poverty (e.g. World Development Report 1990) with
the preconditions that access to education, health, and social services
are available to all by means of other policies. On the other hand,
there is a realisation that growth, inequality, and poverty relations
are non-linear, complex, and path dependent in their dynamics. An
important point made in this context by Kuznets (1955) was the empirical
finding of an inverted U (arch) shape relationship between growth and
inequality which suggested that the inequality would increase with
growth in the beginning, but will decline at higher levels of growth as
the benefits of growth trickle down to lower income strata. This
argument has been debated since then in the literature with empirical
support gathered for and against this hypothesis. Recent theoretical
literature on the issue tries to find the micro-foundations of the
dynamical relations between these three variables (see for example,
proceedings of the 5th ABCDE Annual (World) Bank Conference on
Development Economics).

This study is concerned with both the interlinks between inequality, extreme poverty reduction, and economic growth and estimates the dampening impact on economic growth and on extreme poverty rates using the Central American countries annualized level data. These dynamic complexities, are analyzed within the auto regressive distributed lag bounds testing approach to cointegration. The results show that when extreme poverty reduction is decomposed into two separate impacts, the growth impact on poverty reduction was lessened by the incidence of high-income inequality. The total dampening impact of inequality, varies from 1.1522% for El Salvador to 2.0589% for Honduras, due to a 1% increase in inequality. Reducing inequalities can be doubly beneficial for the extreme poor in Central American countries. The magnitude of changes in poverty reduction depends on each country-specifics, which leads to the implementation of a different strategy for extreme poverty reduction to different countries

This book explores this developer's dilemma or 'Kuznetsian tension' between structural transformation and income inequality. Developing countries are seeking economic development—that is, structural transformation—which is inclusive in the sense that it is broad-based and raises the income of all, especially the poor. Thus, inclusive economic growth requires steady, or even falling, income inequality if it is to maximize the growth of incomes at the lower end of the distribution. Yet, this is at odds with Simon Kuznets hypothesis that economic development tends to put upward pressure on income inequality, at least initially and in the absence of countervailing policies. The book asks: what are the types or 'varieties' of structural transformation that have been experienced in developing countries? What inequality dynamics are associated with each variety of structural transformation? And what policies have been utilized to manage trade-offs between structural transformation, income inequality, and inclusive growth? The book answers these questions using a comparative case study approach, contrasting nine developing countries while employing a common analytical framework and a set of common datasets across the case studies. The intended intellectual contribution of the book is to provide a comparative analysis of the relationship between structural transformation, income inequality, and inclusive growth; to do so empirically at a regional and national level; and to draw conclusions from the cases on the varieties of structural transformation, their inequality dynamics, and the policies that have been employed to mediate the developer's dilemma.

This book explores this developer's dilemma or 'Kuznetsian tension' between structural transformation and income inequality. Developing countries are seeking economic development—that is, structural transformation—which is inclusive in the sense that it is broad-based and raises the income of all, especially the poor. Thus, inclusive economic growth requires steady, or even falling, income inequality if it is to maximize the growth of incomes at the lower end of the distribution. Yet, this is at odds with Simon Kuznets hypothesis that economic development tends to put upward pressure on income inequality, at least initially and in the absence of countervailing policies. The book asks: what are the types or 'varieties' of structural transformation that have been experienced in developing countries? What inequality dynamics are associated with each variety of structural transformation? And what policies have been utilized to manage trade-offs between structural transformation, income inequality, and inclusive growth? The book answers these questions using a comparative case study approach, contrasting nine developing countries while employing a common analytical framework and a set of common datasets across the case studies. The intended intellectual contribution of the book is to provide a comparative analysis of the relationship between structural transformation, income inequality, and inclusive growth; to do so empirically at a regional and national level; and to draw conclusions from the cases on the varieties of structural transformation, their inequality dynamics, and the policies that have been employed to mediate the developer's dilemma.

This study examines the complex relationships between economic growth and income inequality in different regions of Kazakhstan, revealing the nuances of their interaction. The article aims to assess the long-term and short-term effects of economic growth on income inequality in both forward and reverse directions across the regions of Kazakhstan. Employing region-specific time series data allowed us to examine the bidirectional impact of economic growth on inequality, using an error correction model (ECM) to describe short-run and long-run relationships. The results highlight that the relationship between economic growth and income inequality is heterogeneous across regions, reflecting each area's unique economic and social landscapes. The estimation results support the hypothesis of an inverted U-shaped Kuznets curve linking GRP per capita to inequality with varying starting points for different regions. Regarding the inverse relationship, we identified a positive causal relationship for the West Kazakhstan, Zhambyl and Pavlodar regions, indicating that increased income inequality stimulated economic growth. The study also highlights the significant role of trade, labour force, investment and government consumption in shaping these relationships.

This paper argues for the importance of individuals' tolerance of inequality for economic growth. By using the political ideology of governments as a measure of revealed tolerance of inequality, the paper shows that controlling for ideology improves the accuracy with which the effects of inequality are measured. Results show that inequality reduces growth but more so in societies where people perceive it as being relatively unfair. Further results indicate that legal quality and social trust are likely transmission channels for the effects of inequality.

Capital in the Twenty-First Century outlines a general interpretative framework for data that has been collected by an entire team. It's very different from my 2001 book on top incomes in France, in that it looks at some two dozen countries, instead of just one, covers a period of several centuries and considers wealth in terms of assets, as well as incomes. The important thing about assets is that the available data allow us to take a longer view of wealth inequalities; income tax was not introduced in most Western countries until the early 20th century, so on that basis we can't go back far enough to put the two world wars into proper perspective. Shifting the focus from income to assets, including inherited wealth, allows us to transform the investigative model and deepen the temporal framework back to the Industrial Revolution, studying the dynamics at work in the 19th century. This widening of scope would have been impossible without the help of my colleagues. Adapted from the source document.

This paper argues for the importance of individuals' tolerance of inequality for economic growth. By using the political ideology of governments as a measure of revealed tolerance of inequality, the paper shows that controlling for ideology improves the accuracy with which the effects of inequality are measured. Results show that inequality reduces growth but more so in societies where people perceive it as being relatively unfair. Further results indicate that legal quality and social trust are likely transmission channels for the effects of inequality.

Preface -- Reference -- About the Book -- Contents -- List of Figures -- List of Tables -- 1: Green Innovations and CO2 in a Growth Perspective: A Neoclassical Model -- 1.1 A Rational Approach to Promotion of Green Innovation -- 1.1.1 Taxation and Subsidies as a Means to Internalize External Effects -- 1.1.2 Economic Growth -- 1.1.3 Traditional Neoclassical Growth Modeling -- 1.2 Technological Progress and RandD -- 1.2.1 Golden Rule Aspects in an Economy with Technological Progress -- 1.2.2 Extensions of the Neoclassical Growth Model -- 1.2.3 Growth Model with RandD and Emissions -- 1.2.4 Growth in a World with Negative External Effects: CO2 Emissions and Hybrid Welfare -- 1.3 Policy Perspectives -- 1.3.1 Taxation, Risk, and Innovation -- 1.3.2 Liability Rules and Insurance Costs -- 1.3.3 Green Rating and Capital Markets -- 1.3.4 Double Sustainability -- Appendix -- A.1 The Genuine Savings Rate -- A.2 ICT and Dematerialization -- A.3 Selected Statistics on Renewable Energy Related Patents -- A.4 Human Capital and Growth -- A.5 The Green Variant of the QUEST Model -- A.6 CO2 Emissions by Sector in Selected Countries (Figures and Key Points Are Quotes from International Energy Agency) -- A.7 CO2 Intensity in Selected Countries -- A.8 Total Gross Domestic Product (TGDP) -- References -- 2: Innovation, Inequality, and a Golden Rule for Growth in an Economy with RandD -- 2.1 New Quasi-endogenous Growth Model with Biased Technological Progress -- 2.2 Policy Conclusions -- Appendix -- A.1 Perspectives on Meeting the Golden Rule in Selected Countries (Difference Refers to Real GDP Growth Minus Real Interest Ra... -- A.2 Genuine and Adjusted Gross Savings (beta=33.33%) -- A.3 Info on Tax Revenue, Total Tax Revenue as % of GDP -- A.4 The Link Between TFP Growth and the RandD-GDP Ratio, Regression Results -- References

Using two unifying models and an empirical exercise, this paper presents and extends the main theories linking income distribution and growth, as well as the relevant empirical evidence. The first model integrates the political economy and imperfect capital markets theories while the second is a growth version of the prisoner's dilemma. The economy's growth rate is shown to fall with interest groups' rent-seeking abilities, as well as with the gap between rich and poor. It is not income inequality per se that matters, however, but inequality in the relative distribution of earning and political power.