It was a part of the wisdom of mainstream economics that in the early stages of development inequality would rise but as growth persisted, it would, eventually, decline. Early evidence seemed to suggest that this pattern would be borne out. But, as time passed and growth persisted, inequality continued to grow, casting doubt on the received wisdom. The aim of this two-volume book is to analyze the current state of global and regional inequality, dissect the phenomenal increase in inequality that we have seen occur in recent times, and better understand the complex relationship between inequality and development. The political instability and conflict that we see around the world, arguably, has connection to economic deprivation of large segments of society and the perception of marginalization. This two-volume work acquires a special significance in the light of these developments.
Joseph E. Stiglitz is University Professor at Columbia University, USA, and the winner of the 2001 Nobel Prize for Economics. He served on President Clinton's economic team as a member and then as Chairman of the U.S. Council of Economic Advisors in the mid-1990s. He then joined the World Bank as Chief Economist and Senior Vice President. Kaushik Basu is the Chief Economist and Senior Vice President of the World Bank. He is currently on leave from Cornell University, USA, where he is Professor of Economics and the C. Marks Professor of International Studies. Previously he served as Chief Economic Adviser to the Government of India.
Introduction: Inequality and Growth: A Preamble; Kaushik Basu, Joseph E. Stiglitz and Vivian Hon 1. New Theoretical Perspectives on the Distribution of Income and Wealth Among Individuals; Joseph E. Stiglitz 2. Reflections on the 'Equity and Development' World Development Report Ten Years Later; Francois Bourguignon Commentary: Equity and Development: Revisiting the 2006 World Development Report; Martin Ravallion 3. Person Equivalent Headcount Measures of Poverty; Tony Castleman, James E. Foster and Stephen C. Smith Comments on 'Person Equivalent Headcount Measures of Poverty'; Bhaskar Dutta 4. How Useful is Inequality of Opportunity as a Policy Construct?; Ravi Kanbur and Adam Wagstaff Comments on 'How Useful is Inequality of Opportunity as a Policy Construct?; Aristomene Varoudakis 5. Towards a New Definition of Shared Prosperity: A Dynamic Perspective from Three Countries; Hai-Anh H. Dang and Peter Lanjouw Comments on 'Welfare Dynamics Measurement: Two Definitions of a Vulnerability Line and their Applications'; Sudhir Anand 6. Behavioral Economics and Social Exclusion: Can Interventions Overcome Prejudice?; Karla Hoff Origin and Evolution of Cognitive Frames: Comments on 'Behavioral Economics and Social Exclusion: Can Interventions Overcome Prejudice?'; Paola Giuliano 7. The Effects of Fiscal Redistribution; Michele Battisti and Joseph Zeira Comments on 'The Effects of Fiscal Redistribution'; James E. Foster 8. Inequality of Happiness: Evidence of the Compression of the Subjective Well-being Distribution with Economic Growth; John Ifcher and Homa Zarghamee Why focus on Subjective Well-Being inequality?: Comments on 'Inequality of Happiness: Evidence of the Compression of the Subjective Well-being Distribution with Economic Growth'; Murray Leibbrandt