Year: 2020
Type: report
Abstract: We contribute to the Solow-Swan strain of economic growth literature by integrating national distributional aspects into a dynamic model of economic growth. We show that country specific optimal growth policies balance distributional “preferences” against savings propensities of different percentiles of the emerging income distribution. We then present international comparisons of growth decomposition into distributional statistics and propose new measures of economic performance. Historical economic performance reveals heterogeneous patterns of inequality increasing (e.g. US, UK, Germany, China) and decreasing (e.g. Ireland, France, Netherlands, Vietnam) economic growth around the world. These comparisons reveal the implicit efficiency-equity trade-offs in each country’s set of national economic growth and social policies.
Authors: Turk, Zachary, Groom, Ben, Fenichel, Eli
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
SDG: Reduced inequalities
Open Access status: green
OpenAlex ID: W7202331081