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 Big Tradeoff is a very personal work from one of the most important macroeconomists of the last hundred years.
Most thinking about long-run growth assumes implicitly that development is something akin to climbing a hill, that it entails more or less steady increases in real income, punctuated by business cycle fluctuations. 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. It may seem counterintuitive that inequality is strongly associated with less sustained growth.
The quality of economic and political institutions, an outward orientation efficienccy an economy, macroeconomic stability, and human capital accumulation have long been recognized as important determinants of economic wnd. The difference between countries that can sustain rapid growth for many years or even decades and the many others that see growth spurts fade quickly may be the level of inequality. After all, some inequality is essential to the effective functioning of a market economy and the incentives needed for investment and growth Chaudhuri and Ravallion, Is this feature helpful?
Amazon Advertising Find, attract, and engage customers. I would recommend any one interested in the social sciences to have a copy of this book in their library. In oun at the numbers you must keep in mind when this was written. It appears to be the case in, for example, Cameroon.
One example off the top of my head: Arthur Melvin Okun is widely considered among the most important macroeconomists of the twentieth century. The Market needs a place 2.
When there are short-run trade-offs between the effects of policies on growth and income distribution, the evidence we have does not in itself say what to do. Amazon Drive Cloud storage from Amazon. But in others, the experience is more like a roller coaster. Berg, Andrew, and Jonathan D. 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.
Alan Winters and Shahid Yusuf Washington: Okun argues persuasively that we need to use the dynamics of a market economy to generate growth, but to embed markets in a reasonable framework of laws and regulations to ensure provision of basic public goods, check abuses, curb inequality, and preserve competition.
However, even accepting this as more of an informal work than an academic work, there are some serious shortcomings in the arguments. I’d like to read this book on Kindle Don’t have a Kindle? The Big Tradeoff by Arthur M. In some cases, the experience is like climbing a hill.
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Please try again later. The Big Tradeoff Washington: His discussion of how societies rely on rights as well as markets should be required reading for all young economists who are enamored with market solutions to all problems. There’s a problem loading this menu right now.
Showing of 21 reviews. The recent global economic crisis, with its roots in U. And, taking a historical perspective, the increase in U. For example, the initial reforms that ignited growth in China involved giving stronger incentives to farmers. Okun clarifies the issues surrounding the tradeoff between equality and efficiency, rather than taking a firm position on the issue of how much society should exchange one for the other.
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Finance & Development, September – Equality and Efficiency
This increased the income of the poor and reduced overall inequality as it gave a tremendous spur to growth. Do these statistical results find a voice in the political and economic narratives of the actual country growth episodes? Amazon Renewed Refurbished products with a warranty. Inequality also preserves its significance more systematically across different samples and definitions of growth spells than the other variables do.
Free Email Notification Receive emails when we post new items of interest to you. Inequality is not new but it was much less extreme when this book was written. And this new edition includes “Further Thoughts on Equality and Efficiency,” a paper published by the author two years later.
To all readers, Okun presents an engaging dual theme: We study growth spells as medical researchers might examine life expectancy. Okun was a master of analogies. Read reviews that mention equality and efficiency arthur okun society economics inequality political economic relevant wealth academic college country ideas income insightful thought-provoking tradeoff.
When Okun died unexpectedly at the age of just 51 in Marchhe was hailed as an innovative and effective policy economist who was unique in holding the respect and admiration of both academic economists and practical politicians.