The savings function and marginal savings behavior. Note that the average savings generated by Rohini and Paulo may be found by connecting the points on the graph that represent their individual savings-income configuration, and then looking at the savings represented by the halfway point on […]
Desired standards of living, income, and savings rates. In contrast to the standard models of economic growth described in Chapter 3, savings behavior is not only determined by income but by income and aspirations, and the latter depend on existing inequalities of income and wealth. […]
Initial inequality and subsequent growth. 150 Don’t use plagiarized sources. Get Your Custom Essay on Initial inequality and subsequent growth Just from $10/Page Order Essay Source: Alesina and Rodrik [1994]. Note: Figures in parentheses denote t values. Their regression results indicated a substantial […]
From distribution to distribution via product demand. As you can imagine, with many different commodities being produced and consumed, and with many different factors of production, our observations are nowhere near as clear-cut. However, a method suggests itself: study the commodity bundles consumed by different […]
Inequality, capital markets, and development The problem of collateral We often take markets for granted. When we do our shopping at the grocery store, it is rarely the case (though it happens) that we, as consumers, take what we need and do not pay for […]
Economic considerations underlying default. Here is a description of the business. It entails setting up a small factory, which will hire fifty workers, who will be paid $5,000 each, and produce and sell widgets for a total revenue of $500,000. Imagine for simplicity that the […]
Wage rates and fractions of people lacking access to credit. Figure 7.8. The supply curve of labor. Note the jumps at z and at . Don’t use plagiarized sources. Get Your Custom Essay on Wage rates of people lacking access to credit Just from $10/Page […]
Determination of the equilibrium wage rate. 158 Don’t use plagiarized sources. Get Your Custom Essay on Determination of the equilibrium wage rate Just from $10/Page Order Essay Finally, Figure 7.10c displays an intermediate situation of moderate inequality or average wealth, where sizable numbers […]
Poverty: First principles 8.2.1. Conceptual issues At the heart of all discourses on poverty is the notion of a poverty line: a critical threshold of income, Don’t use plagiarized sources. Get Your Custom Essay on Poverty First principles and Conceptual issues Just from $10/Page Order […]
Poverty: Empirical observations We now turn to the data to get a sense of the extent of poverty and the characteristics of the poor. We begin with a universal poverty line to facilitate cross-country comparison. Be aware that this is a tricky business. We already […]