Inequality and Development

Problems of inequality include low income and that too unequal, leading to issues like poverty, undernutrition, savings/investment challenges, limited access to credit, financing difficulties, reduced education, and overall less ______.

According to Oshima (1962) and Kuznets (1955, 1963), economic progress measured by per capita income, initially results in increased ______, but eventually, these differences diminish as development benefits become more widespread.

The inverted U hypothesis suggests economic development is a sequential, yet uneven process, wherein first, inequality ______, then later declines as more of the population benefits from growth.

Hirschman and Rothschild (1973) discuss how tolerance of inequality in income distribution can be explained during economic development; this is because individual welfare at any given time depends on both present conditions and expected future level of ______.

The ‘tunnel effect’ describes a scenario where an increase in an individual's utility, and thus tolerance for inequality, results from an improvement in the economic status of ______.

According to Paukert's 1973 study, the average Gini coefficient and range of Gini coefficients can be used to analyze the ______ U hypothesis across 56 countries.

Ahluwalia's 1976 study used data from 60 countries, including 40 developing, 14 developed, and 6 socialist, to model income share (Si) as a function of per capita GDP (y) including terms for socialist countries (D) and a non-linear relation along with an ______ term.

In the analysis developed in the included content, the authors note there are biases in relying on per capita income (PCI) alone to explain all inequality, with potential issues arising in ______ measures such as Lorenz crossings and in the regression equation itself.

The time series analysis of inequality allows structural parameters to vary across countries, offering a mid-way approach that acknowledges the problem of data while assuming similar relationships, which is a common restriction to ______.

In the study of income and inequality, reasons for increased income can be normal, uneven, or compensatory, but it is initially ______ due to factors like few people in the dual sector, specific industries booming, and skilled labor benefiting disproportionately.

The rate of savings can significantly affect long-run per capita income (PCI) and overall economic growth, making the relationship between saving and inequality particularly important when considering government approaches to redistribute through ______.

Saving behavior is influenced not only by income but also by aspirations; therefore, savings are also dependent on existing inequalities of income and ______.

Alesina and Rodrik (1994) and Persson and Tabellini (1994), along with others, have examined the relationship between inequality, political redistribution, and economic growth, including wealth inequality and transfer of wealth via land ______.

Inequality of wealth can be difficult to measure, and it is often proxied by income; Alesina and Rodrik (1994) found a substantial negative relationship between initial inequality and subsequent economic growth using both general and land ______.

The level of consumption and pattern of consumption are related to income, and this phenomena is connected to overall consumption/expenditure patterns that determine income distribution and the composition of ______.

One ethical or functional reason for the reduction in ______ is the promotion of fairness and equal opportunities for all individuals.

Consumption and ______ are fundamental aspects of understanding how resources are utilized within an economy.

Individuals possess endowments of various goods, including potential inputs, which influence their participation in ______ activities.

Economic ______ and inequality are intertwined phenomena that evolve together over time, shaping the socio-economic landscape of societies.

The inverted U hypothesis suggests that in the early stages of development, ______ tends to increase before eventually decreasing as economies mature.

The Tunnel Effect explains how individuals may tolerate income ______ during economic development as they anticipate future improvements in their own economic status.

Paukert's study in 1973 analyzed average Gini coefficients across 56 countries to assess the presence of the inverted ______ hypothesis.

Words of caution remind us that per capita income does not fully account for all aspects of ______, and statistical biases can arise when using it as a sole indicator.

Time series analysis allows for the examination of inequality trends over time, providing insights into how structural parameters vary in response to ______ processes.

Uneven income increases can lead to disparities in ______, as certain individuals and sectors may benefit disproportionately from economic growth.

Savings rates play a crucial role in long-run per capita income and economic ______, influencing government decisions on taxation and redistribution policies.

Individuals' ______ and savings behavior are influenced not only by income but also by their aspirations and perceptions of existing inequalities.

Inequality can act as a barrier to participation in activities such as making investments in education and starting businesses, limiting opportunities for advancement.

Problems stemming from inequality include unequal access to opportunities and resources, resulting in a population that is less ______ and less productive overall.

An ethical reason for reducing income disparity is to enable people to achieve improved standards of ______ and quality of life, contributing to overall societal well-being.

Reduced access to credit due to disparity restricts people's ability to invest in education, entrepreneurship, and asset accumulation, hindering economic ______ and societal progress.

Consumption and production are intertwined, as consumption patterns reflect consumer demand and influence production decisions regarding necessary wages and ______.

The Tunnel Effect suggests that tolerance toward income differences can be sustained in the early stages of growth if the majority of the concerned public is well-informed about realistic future expectations and ______ opportunities.

The inverted U-shape indicates that there is a complex dynamic in the way that a nation moves along the path of ______; the path might widen and then later fall.

Paukert examined the Gini coefficient as a measure of ______ distribution to arrive at his conclusions.

If the savings rate happens to differ, then it impacts the per capita income with respect to long run ______ of both the society.

A wealth tax can encounter barriers such as vote bank or a lack of ______ will from the government.

A substantial amount of the economic inequality has to do with how one uses land and capital to have a potential for ______ growth.

Mass consumption tends to generate less economic disparity in comparison to a strong tendency toward ______ consumption.

The inverted U hypothesis indicates a ______ between economic growth and the distribution of wealth within a society.

When evaluating wealth disparity on a global scale, economists take into account elements that influence general models and how the general models relate to different economic ______.

According to previous readings, countries with less access to credit saw reduced investment and were unable to capitalize on ______ opportunities.