Search results for " World Interest Rate"

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World Interest Rates and Inequality: Insight from the Galor - Zeira Model

2018

In this paper, we study the relationship between changes in the world interest rate and within-country inequality during the 1985–2005 period in which the world interest rate sharply declined. In line with the predictions of the seminal model of Galor and Zeira [Income distribution and macroeconomics. Review of Economic Studies 60, 35–52], the analysis suggests that the decrease in the world interest rate is associated with a decrease in inequality in poor countries and an increase in inequality in rich ones.

Economics and EconometricsInequalitymedia_common.quotation_subjectKeynesian economics05 social sciencesInterest rateGalor-Zeira modelInequalityIncome distributionWorld interest rates0502 economics and businessEconomics050207 economicsSettore SECS-P/01 - Economia PoliticaMultiple steady statesInequality Economic Growth Multiple Steady States World Interest RatesEconomic growth050205 econometrics media_common
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World Interest Rates, Inequality and Growth: an Empirical Analysis of the Galor-Zeira Model

2014

Following Galor and Zeira (1993), we study the effect of the world interest rate on inequality and growth for the period 1985-2005, characterized by falling world interest rates and cross-country income polarization. We argue that the two phenomena are related on th e basis of the following findings, which are in accordance with the predictions of the Galor and Zeira model: 1) a reduction of the world inter est rates increases inequality in rich countries and decreases inequ ality in poor countries; 2) inequality has a negative (and significant) eff ect on human capital accumulation in rich countries and a positive (b ut mostly not significant) effect in poor countries; 3) human capital po …

Inequality Human Capital Economic Growth Multiple Equilibria World Interest RateSettore SECS-P/01 - Economia Politica
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