Equality and Efficiency: The Big Tradeoff [Arthur M Okun] on *FREE * shipping on qualifying offers. Book by Arthur M Okun. Equality and Efficiency: The Big Tradeoff (A Brookings Classic) [Arthur M. Okun, Lawrence H. Summers] on *FREE* shipping on qualifying offers. Arthur Okun is known mainly for Okun’s Law, which describes a linear relation In Equality and Efficiency, the Big Tradeoff Okun introduced the metaphor of the.
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The analysis suggests that a number of variables esuality to be important in other contexts also tend to be associated with longer growth spells see Chart 4. In the years since, Okun’s idea of indexing misery has been both repurposed and refined to track happiness and well-being across all sorts of indicators.
Ships from and sold by Amazon. They study the effects of age, weight, gender, and smoking habits on life expectancy; we look at whether factors such as political institutions, health and education, macroeconomic instability, debt, efficinecy trade openness might influence the likelihood that a growth spell will end.
Then we increase each variable, one variable at a time, and look at what happens to expected duration. The result is a statistical oku of growth duration that relates the expected length of a growth episode or, equivalently, the risk that it will end in a given year to several of these variables.
One person found this helpful. I always wondered why Arthur Efficciency did not author more books, and then I realized that, sadly, he passed away at a relatively early age. Inequality still matters when we allow for regional differences in expected growth duration such as between emerging Asia and Africa.
Finance & Development, September – Equality and Efficiency
The measure of inequality is the Gini coefficient, which varies from zero all households having the same income to all income received by ane household. It appears to be the case in, for example, Cameroon. To borrow a marine analogy: Inequality matters for growth and other macroeconomic outcomes, in all corners of the globe.
Growth averaged 7 percent from through However, even accepting this as more of an informal work than an academic work, there are some serious shortcomings in the arguments. Okun has two central themes: I love this short book and re-read it every 5 years or so. A classic on the subject. Page 1 of 1 Start over Page 1 of 1. We want the size of each of these increases to be readily comparable. But in others, the experience is more like a roller coaster.
Granting that this was written before behavioral economics took off, the book omits almost entirely any influence of human nature affecting the policies he proposes. Sheds considerable light on But our analysis should tilt the balance toward the long-run benefits—including for growth—of reducing inequality. AmazonGlobal Ship Orders Internationally.
China, India and the Global Economyed. The quality of economic and political institutions, an outward orientation of an economy, macroeconomic stability, and human capital accumulation have long been recognized as important determinants of economic growth.
The Big Tradeoff Washington: The recent global economic crisis, with its roots in U. Letters may be edited. Okun may be best remembered for Okun’s Law, but his lasting legacy is the respect and admiration he earned from economists, practitioners, and policymakers.
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We estimate that closing, say, half the inequality gap between Latin America and emerging Asia would more than double the expected duration of a growth spell in Latin America. Was rather hoping for a more spirited point-of-view than this highly-academic elucidation of the issue. Top Reviews Most recent Top Reviews.
Income distribution and growth sustainability In our research we looked equaoity the extent to which the duration of a growth episode is related to differences in country characteristics and policies. Institutions in a capitalist democracy prod us to get ahead of our neighbors economically after telling us to stay in line socially.
Two Sides of the Same Coin? North America’s Lost Decade?: Inequality also preserves its significance more systematically across different samples and definitions of growth spells than the other variables do. Would you like to tell us about a lower price? Share your thoughts with other effiicency.
Oil wealth in the s initially financed large increases in the public sector, particularly in public employee wages, which proved very difficult to cut when oil prices fell.