Monday, October 9, 2017

Trends in Income Inequality and its Impact on Economic Growth

Here is a link to an empirical analysis of income inequality and economic growth by Federico Cingano of OECD.

One of the main takeaways is that higher inequality (higher Gini coefficient or higher Palma ratio) results in less investment in education by households in the poorest quintiles (poorest 40% of the population), which results in less economic growth.  The study also finds that increases in the incomes of the richest households has no effect on economic growth and that redistribution policies (higher taxes for the rich and transfers to the poor) need not have an adverse impact on economic growth.

Wednesday, October 4, 2017

Joseph Stiglitz

We're discussing inequality in class these days, so we should learn about Joseph Stiglitz.

Here is a 2016 interview with Stiglitz at The Atlantic, where he discusses inequality, the Fed, candidates for president and economists.

Here is a short 2015 article at the Huffington Post about inequality.

Here is a short video of Stiglitz at the Ford Foundation.

Inequality, Superstars and economic growth

Here is a great article from the NYT (published in 2010) that outlines a lot of the issues we are discussing in class. 

Thursday, September 14, 2017

MDGs and SDGs

Here are links to information about the UN's Milineum Development Goals and Sustainable Development Goals.

Read about MDG progress:

HDI and other development indices

Below are the links we used in class pertaining to the Human Development Index (HDI), the Inequality-Adjusted HDI, the Gender Inequality Index (GII) and the Multidimensional Poverty Index (MPI).

HDI map

HDI calculator

Gapminder plot:  HDI and per capita GDP (PPP)




Technical notes on these indices (good graphic)

Wednesday, August 30, 2017

The Big Mac Index

The Big Mac Index (created by The Economist magazine in the 1980s) allows us to compare local prices for a single good which is sold all over the world. We should recognize that this measure is mostly for fun. The price of a single good (a burger) is not a great proxy of general purchasing power of non-tradable goods. 

Monday, August 28, 2017