Dollar, DavidKleineberg, TatjanaKraay, Aart2014-05-142014-05-142014-04https://hdl.handle.net/10986/18329Social welfare functions that assign weights to individuals based on their income levels can be used to document the relative importance of growth and inequality changes for changes in social welfare. In a large panel of industrial and developing countries over the past 40 years, most of the cross-country and over-time variation in changes in social welfare is due to changes in average incomes. In contrast, the changes in inequality observed during this period are on average much smaller than changes in average incomes, are uncorrelated with changes in average incomes, and have contributed relatively little to changes in social welfare.en-USCC BY 3.0 IGOABSOLUTE INEQUALITYABSOLUTE POVERTYABSOLUTE VALUEADVERSE EFFECTSAGGREGATE GROWTHAGRICULTUREAMERICAN ECONOMIC REVIEWANNUAL GROWTHANNUAL GROWTH RATEANNUAL RATEAVERAGE ANNUALAVERAGE CHANGEAVERAGE GROWTHAVERAGE GROWTH RATESAVERAGE INCOMEAVERAGE INCOME GROWTHAVERAGE INCOMESAVERAGE LIVING STANDARDSBENCHMARKBLACK MARKETBLACK MARKET PREMIUMBUDGET DEFICITSCAPITAL ACCOUNTCHANGES IN INEQUALITYCHANGES IN POVERTYCIVIL LIBERTIESCOEFFICIENT OF INEQUALITYCOUNTRY EFFECTSCROSS-COUNTRY DIFFERENCESCROSS-COUNTRY INCOMECROSS-COUNTRY REGRESSIONCUMULATIVE DISTRIBUTIONCUMULATIVE DISTRIBUTION FUNCTIONCUMULATIVE INCOMECUMULATIVE INCOME SHARESDATA AVAILABILITYDECREASING FUNCTIONDENSITY FUNCTIONDESCRIPTIVE STATISTICSDEVELOPED COUNTRIESDEVELOPING COUNTRIESDEVELOPING WORLDDEVELOPMENT ECONOMICSDEVELOPMENT POLICYDEVELOPMENT RESEARCHDISTRIBUTION COMPONENTDISTRIBUTION OF INCOMEDISTRIBUTION OF INEQUALITYDISTRIBUTIONS OF INCOMEDYNAMIC PANELECONOMETRICSECONOMIC GROWTHECONOMIC LITERATUREECONOMIC POLICYECONOMIC REVIEWECONOMIC STUDIESEDUCATIONAL ATTAINMENTELASTICITYEMPIRICAL ANALYSISEMPIRICAL EVIDENCEEMPIRICAL GROWTH LITERATUREEMPIRICAL LITERATUREEMPIRICAL MODELSEMPIRICAL RESULTSEMPIRICAL WORKERROR TERMSESTIMATED COEFFICIENTESTIMATED COEFFICIENTSEXCHANGE RATEEXPLANATORY VARIABLESEXPORTSEXTREME POVERTYFINANCIAL DEPTHFINANCIAL DEVELOPMENTFUNCTIONAL FORMGDPGDP DEFLATORGINI COEFFICIENTGINI INDEXGROWTH COMPONENTGROWTH DETERMINANTSGROWTH EFFECTGROWTH LITERATUREGROWTH PRO-POORGROWTH RATEGROWTH RATESGROWTH REGRESSIONGROWTH REGRESSIONSHETEROSKEDASTICITYHIGH INCOMEHIGH INCOME COUNTRIESHIGH INFLATIONHIGHER VOLATILITYHOUSEHOLD SIZEHOUSEHOLD SURVEY DATAHOUSEHOLD SURVEYSINCOMEINCOME DISTRIBUTIONINCOME DISTRIBUTIONSINCOME GROWTH RATEINCOME INEQUALITYINCOME LEVELINCOME LEVELSINCOME SHAREINCOME SHOCKSINCOME STUDYINCOMES INCREASEINEQUALITYINEQUALITY AVERSIONINEQUALITY AVERSION PARAMETERINEQUALITY CHANGEINEQUALITY CHANGESINEQUALITY DECLINESINEQUALITY FALLSINEQUALITY INDEXINEQUALITY MEASUREINEQUALITY MEASURESINFLATION RATEINFLATION RATESINTERNATIONAL MONETARY FUNDLABOUR MARKETLABOUR SUPPLYLIFE EXPECTANCYLIVING STANDARDSLOG INCOMELONG RUNLONG-TERM GROWTHLORENZ CURVELOW INCOMELOW INCOME COUNTRIESLOW-INCOME COUNTRIESM2MACROECONOMIC POLICIESMACROECONOMICSMEAN GROWTHMEAN INCOMEMEAN INCOME GROWTHMEASURE OF INEQUALITYMEASURED INEQUALITYMEASUREMENT ERRORMICRO DATAMIDDLE INCOMEMIDDLE INCOME COUNTRIESMIDDLE-INCOME COUNTRIESMONOPOLYNATIONAL ACCOUNTSNATIONAL INCOME0 HYPOTHESISOBSERVED CHANGEOBSERVED GROWTHOBSERVED GROWTH RATEOBSERVED INCREASEOBSERVED VALUEPANEL REGRESSIONSPER CAPITA INCOMESPOLICY DISCUSSIONSPOLICY RESEARCHPOLICY VARIABLESPOLITICAL INSTABILITYPOLITICAL RIGHTSPOOR PEOPLEPOPULATION GROWTHPOSITIVE EFFECTPOVERTY DEBATEPOVERTY ESTIMATESPOVERTY GAPPOVERTY MEASURESPOVERTY REDUCTIONPOWER PARITYPRIVATE CONSUMPTIONPROMOTING GROWTHPUBLIC SECTORPURCHASING POWERPURCHASING POWER PARITYREDUCED INEQUALITYREGRESSION ANALYSISRELATIVE IMPORTANCERELATIVE INCOMESRICH PEOPLERISING INCOME INEQUALITYRISING INEQUALITYSECTOR EMPLOYMENTSERIES DATASIGNIFICANCE LEVELSIGNIFICANT CORRELATIONSIGNIFICANT DIFFERENCESSIGNIFICANT RELATIONSHIPSOCIAL WELFARESTANDARD DEVIATIONSTANDARD ERRORSTRADE OPENNESSVALUE ADDEDVOLATILITYWEALTH10.1596/1813-9450-6842