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File2-page11 - Growth Poverty and Inequality in India •...

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Besley & Burgess (2003) Redistribution, Growth and Welfare regressions of the following type could be run: log P it = θ i + η log μ it + βσ it + ε it where σ it is income inequality for country i at time t measured by the stan- dard deviation of the income distribution in logs - β turns out to be positive and significant. (See Table 3: Inequality and Poverty Reduction) reducing inequality can have a big negative effect on poverty
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Unformatted text preview: Growth, Poverty and Inequality in India • Data for 16 main states of India over the period 1960-2000 • these 16 states account for over 95% of Indian population • suggestions that states that experienced greater structural transfor-mation and economic growth experience more rapid reductions in poverty Development Economics, LSE Summer School 2007 8...
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