The Macroeconomic Consequences of Poverty and Inequality
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Date
2014-09-29
Authors
Allen, Jeffrey
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Publisher
University of Oregon
Abstract
This dissertation examines the macroeconomic effects of poverty and inequality. The second chapter considers the effect of poverty and subsistence consumption constraints on economic growth in a two-sector occupational choice model. I find that in the presence of risk taking, subsistence consumption constraints result in a dramatic slow down in terms of economic growth. The third chapter (joint with Shankha Chakraborty) proposes a model in which agents face endogenous mortality and direct preferences over inequality. I find that the greater the scale of relative deprivation the worse the mortality outcomes are for individuals. The fourth chapter looks at the relationship between inequality and the demand for redistribution when individuals have social status concerns. I show that under social status concerns an increase in consumption inequality results in higher taxation and lower growth.
This dissertation includes unpublished coauthored material.
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Keywords
Growth, Inequality, Macroeconomics, Poverty, Status Seeking