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Natural Resource Booms and Inequality: Theory and Evidence.

Abstract:

Surprisingly little is known about the impact of resource booms on income inequal- ity in resource rich countries (Ross, 2007). This paper develops a simple theory, in the context of a two sector growth model in which learning-by-doing drives growth, to explain the time path of inequality following a resource boom. Under plausible con- ditions, we …nd that income inequality will fall in the short run immediately after a boom, and will then increase steadily over time as the economy grows, unt...

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Benedikt Goderis More by this author
Samuel W. Malone More by this author
Volume:
08
Series:
Research Papers
Publication date:
2008-08-05
URN:
uuid:dbcf2d1f-76e0-4d7a-ba46-2e29d82e58c0
Local pid:
oai:economics.ouls.ox.ac.uk:12969
Language:
English

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