The effect of inequality on growth: Theory and evidence from the Indian states
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Ghosh, S and Pal, S (2004) The effect of inequality on growth: Theory and evidence from the Indian states Review of Development Economics, 8 (1). pp. 164-177.
Full text not available from this repository.Abstract
The paper examines the effect of inequality on growth among the subnational states in India. Theoretically, growth of the regional economy is driven by productive public investment in the provision of health and education services financed by a linear output tax, and the optimum tax rate is determined by the median voter. In contrast to existing results, the authors obtain an ambiguous relationship between initial inequality and subsequent economic growth. Analysis of the Indian state-level data suggests that rural inequality influences growth of total output more than urban inequality, and does so negatively. The indicator of intersectoral inequality is more important in explaining sectoral output growth.
| Item Type: | Article | |||||||||
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| Divisions : | Surrey research (other units) | |||||||||
| Authors : |
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| Date : | 1 February 2004 | |||||||||
| DOI : | 10.1111/j.1467-9361.2004.00226.x | |||||||||
| Depositing User : | Symplectic Elements | |||||||||
| Date Deposited : | 16 May 2017 15:11 | |||||||||
| Last Modified : | 24 Jan 2020 14:03 | |||||||||
| URI: | http://epubs.surrey.ac.uk/id/eprint/817886 |
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