Ferreira, Francisco H.G.2012-03-192012-03-192010-09https://hdl.handle.net/10986/3908The joint determination of aggregate economic growth and distributional change has been studied empirically from at least three different perspectives. A macroeconomic approach that relies on cross-country data on poverty, inequality, and growth rates has generated some interesting stylized facts about the correlations between these variables, but has not shed much light on the underlying determinants. "Meso-" and microeconomic approaches have fared somewhat better. The microeconomic approach, in particular, builds on the observation that growth, changes in poverty, and changes in inequality are simply different aggregations of information on the incidence of economic growth along the income distribution. This paper reviews the evolution of attempts to understand the nature of growth incidence curves, from the statistical decompositions associated with generalizations of the Oaxaca-Blinder method, to more recent efforts to generate "economically consistent" counterfactuals, drawing on structural, reduced-form, and computable general equilibrium models.CC BY 3.0 IGOABSOLUTE VALUEAGGREGATE FUNCTIONSAGGREGATE INEQUALITYAGRICULTURAL GROWTHAGRICULTUREANNUAL GROWTHANNUAL GROWTH RATEASSET DISTRIBUTIONASSET INEQUALITYASYMMETRIC INFORMATIONAVERAGE GROWTHAVERAGE INCOMEAVERAGE INCOME GROWTHAVERAGE INCOMESAVERAGE RATECASH TRANSFERSCONSUMPTION EXPENDITURESCOUNTERFACTUALCOUNTRY CASECOUNTRY CHARACTERISTICSCOUNTRY LEVELCUMULATIVE DISTRIBUTIONDATA AVAILABILITYDATA SETDATA SETSDECOMPOSITION TECHNIQUESDENSITY FUNCTIONDEVALUATIONDEVELOPING COUNTRIESDEVELOPMENT ECONOMICSDISAGGREGATED LEVELDISTORTIONARY TAXATIONDISTRIBUTION COMPONENTDISTRIBUTION FUNCTIONDISTRIBUTION FUNCTIONSDISTRIBUTIONAL CHANGEDISTRIBUTIONAL CHANGESDISTRIBUTIONAL DYNAMICSDISTRIBUTIVE POLITICSDYNAMIC SETTINGEARNINGS INEQUALITYECONOMETRIC ANALYSISECONOMIC ACTIVITYECONOMIC DEVELOPMENTECONOMIC EQUILIBRIUMECONOMIC GROWTHECONOMIC INEQUALITYECONOMIC RELATIONSECONOMIC REVIEWECONOMIC STRUCTUREECONOMIC STUDIESECONOMIC THEORYECONOMICSEDUCATED WORKERSEDUCATIONAL ATTAINMENTEMPIRICAL FINDINGSEMPIRICAL LITERATUREEMPIRICAL REGULARITIESENDOGENOUS GROWTHENDOGENOUS VARIABLESEQUILIBRIUMESTIMATED COEFFICIENTSEXCHANGE RATEEXCHANGE RATESEXOGENOUS SHOCKSEXOGENOUS VARIABLESEXTREME POVERTYFALLING POVERTYFARM PRODUCTIVITYFIXED EFFECTSFUNCTIONAL FORMFUNCTIONAL FORMSFUTURE RESEARCHGDPGDP PER CAPITAGENERAL EQUILIBRIUM MODELGINI COEFFICIENTGINI INDEXGROWTH COMPONENTGROWTH ELASTICITYGROWTH PERFORMANCEGROWTH RATEGROWTH RATESGROWTH SPELLSGROWTH THEORYHIGHER INEQUALITYHOUSEHOLD HEADSHOUSEHOLD INCOMEHOUSEHOLD INCOMESHOUSEHOLD MEMBERSHOUSEHOLD SURVEYHOUSEHOLD SURVEYSHUMAN CAPITALIMPACT ON POVERTYIMPERFECT CREDITINCIDENCE ANALYSISINCIDENCE OF POVERTYINCOMEINCOME CONSTANTINCOME DIFFERENCESINCOME DISTRIBUTIONINCOME DISTRIBUTIONSINCOME DYNAMICSINCOME GROWTHINCOME GROWTH RATEINCOME INEQUALITYINCOME LEVELINCOME LEVELSINCREASING INEQUALITYINCREASING RETURNSINDIVIDUAL COUNTRIESINDIVIDUAL GROWTH RATESINDIVIDUAL INCOMESINEQUALITYINEQUALITY CHANGEINEQUALITY CHANGESINEQUALITY DYNAMICSINEQUALITY ELASTICITYINEQUALITY INDEXINEQUALITY MEASUREINEQUALITY MEASUREMENTINEQUALITY MEASURESINEQUALITY TRENDSINFANT MORTALITYINFLATIONINFLATION RATEINFLATION RATESINSURANCEINSURANCE MARKETSINTERNATIONAL POVERTY LINELABOR FORCELABOR MARKETLABOR MARKETSLAGGED INEQUALITYLORENZ CURVEMACROECONOMIC POLICIESMACROECONOMICSMARKET FAILURESMEAN INCOMEMEAN INCOMESMEASUREMENT ERRORMEDIAN VOTERMORTALITY RATESNATIONAL ACCOUNTSNEGATIVE EFFECTNEGATIVE GROWTH0 HYPOTHESISOLD ISSUESOUTPUT GROWTHPATH DEPENDENCEPOLICY CHANGEPOLICY CHANGESPOLICY CIRCLESPOLICY INTERVENTIONPOLICY ISSUESPOLICY RESEARCHPOLICY VARIABLESPOLITICAL ECONOMYPOORPOVERTY CHANGESPOVERTY DYNAMICSPOVERTY HEADCOUNTPOVERTY INDEXPOVERTY LINEPOVERTY LINESPOVERTY MEASUREPOVERTY MEASUREMENTPOVERTY MEASURESPOVERTY RATESPOVERTY REDUCTIONPOVERTY REDUCTIONSPOVERTY TRAPSPOVERTY ­ GROWTHPRICE STABILIZATIONPRODUCTION SETSPROPORTIONAL CHANGEPUBLIC GOODSPUBLIC INVESTMENTPUBLIC SPENDINGREDUCED POVERTYREDUCING POVERTYRELATIVE IMPORTANCERELATIVE INCOMERELATIVE INCOMESRELATIVE INEQUALITYRELATIVE POSITIONRESIDUAL COMPONENTRESIDUAL TERMRISING INEQUALITYRURALRURAL ECONOMYSOCIAL ASSISTANCESTRUCTURAL CHANGETECHNOLOGICAL PROGRESSTOTAL OUTPUTTRADE LIBERALIZATIONTRADE POLICYTRUSTSUNEMPLOYMENTUNEQUAL DISTRIBUTIONUNEQUAL SOCIETIESURBAN AREASWAGE DISCRIMINATIONWAGE RATESWAGESWEALTHWorld Bank10.1596/1813-9450-5424