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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Inequality still matters when we allow for regional differences in expected growth duration such as between emerging Asia and Africa. But too much inequality might be destructive to esuality. As Okun puts it: Subscribe or Modify your profile. I always wondered why Arthur Okun did not author more books, and then I realized that, sadly, he passed away at a relatively early age. Granting that this was written before behavioral economics took off, the book omits almost entirely any influence of human nature affecting the policies he proposes.
Then the economy fell apart and declined by 6 percent a year over the subsequent decade. Amazon Inspire Digital Educational Resources. The Big Tradeoff” Arthur Okun explains why both the state and the market is needed for an equitable and efficient society.
Ships from and sold by Amazon. In a word, no.
In fact equality appears to be an important ingredient in promoting and sustaining growth. There was a problem filtering reviews right now.
Where growth laggards differ from their more successful peers is in the degree to which they have been able to sustain growth for long periods of time. This increased the income of the poor and reduced overall inequality as it gave a tremendous spur to growth. 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.
Explore the Home Gift Guide. Today, Okun’s dual theme feels incredibly prescient as we grapple with the hot-button topic of income inequality. The experiences in developing and emerging economies, however, are far more varied see Chart 2.
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Share your thoughts with other customers. 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.
Learn more about Amazon Prime. And, equalityy a historical perspective, the increase in U.
Finance & Development, September – Equality and Efficiency
But its age, subjectivity, and average writing make this a take-it-or-leave-it for me. With a new foreword by Lawrence H. 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. For most of the book he makes a lot of character assumptions but at the end he actually really ties things together. We have an opportunity to save capitalism in the popular view by taking from the ultra rich who really CAN deal with the loss of a portion of their wealth and distribute it to the poor.
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In some cases, the experience is like climbing a hill. Learn more about Amazon Giveaway. English Choose a language for shopping.
Okun has two central themes: Given the current situation of our country the elimination of poverty is within our grasp. The Market needs a place 2. Ostry PDF version Is there a trade-off between the two or do they go hand in hand? 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.
A systematic look at this experience suggests that igniting growth is much less difficult than sustaining it Hausmann, Pritchett, and Rodrik, These cases, and our broader statistical analysis of a large number of growth episodes, suggest that inequality is an underlying feature that makes it more likely that a number of factors—external shocks, external debt, ethnic fractionalization—come together to bring a growth spell to an end.
The Big TradeoffArthur Okun argued that pursuing equality can reduce efficiency the total output produced with given resources.
Amazon Rapids Fun stories for kids on the go. The recent global economic crisis, with its roots in U. One person found this helpful. In the face of the current global economic turmoil and the need for difficult economic adjustment and reform in many countries, it would be better if these lessons were remembered rather than relearned.
This double standard professes and pursues an egalitarian okkun and social system while simultaneously generating gaping disparities in economic well-being. qeuality
One need look no further than the role inequality is thought to have played in creating the disaffection that underlies much of the recent unrest in the Middle East. Top Reviews Most recent Top Reviews. Customers who bought this item also bought. Amazon Renewed Refurbished products with eficiency warranty. To compare the effects of the different variables on growth duration, we calculate expected duration when all the variables are at their median values the value greater than that observed in 50 percent of the observations in the sample.