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• W571095036 abstract "Following Galor and Zeira (1993), we study the effect of the world interest rate on inequality and growth for the period 1985-2005, char- acterized by falling world interest rates and cross-country income po- larization. We argue that the two phenomena are related on the basis of the following findings, which are in accordance with the predictions of the Galor and Zeira model: 1) a reduction of the world interest rates increases inequality in rich countries and decreases inequality in poor countries; 2) inequality has a negative (and significant) effect on hu- man capital accumulation in rich countries and a positive (but mostly not significant) effect in poor countries; 3) human capital positively affects GDP in both group of countries, in particular with a higher marginal effect in poor countries. The overall effect of these facts is polarization in the world income distribution." @default.
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• W571095036 date "2014-09-01" @default.
• W571095036 modified "2023-09-23" @default.
• W571095036 title "World Interest Rates, Inequality and Growth: an Empirical Analysis of the Galor-Zeira Model" @default.
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