Poverty, income inequality, and development economics theory: Historical, theoretical, and quantitative analyses

摘要

Poverty is an international phenomenon that severely compromises the physical well being, dignity, and freedom of those who suffer from it. It also threatens the political, economic, and social fabrics of communities world wide. Likewise, income inequality is a condition with global dimensions and its relevance is not only a matter of its close association with poverty but also a function of the important questions of fairness and equity that it raises. In this study we seek to improve our understanding of these two concepts particularly as they relate to development economics. We begin by situating the evolution of our understanding of the problems of poverty and inequality in a historical and theoretical context. To specifically illuminate the interrelationship between poverty and inequality and other development issues, we review the theoretical antecedents of development economics theory from their roots in eighteenth century Classical economics through to neoclassical and Keynesian theory and we survey the changing foci of development economics theory from its inception to the present. Next, we review various theoretical paradigms of poverty and inequality to provide a more detailed account of our knowledge of these two concepts. Then we survey techniques of measuring inequality and poverty and clarify some of the dilemmas involved in measuring and defining poverty and inequality. We also describe and analyze in detail the Sen Index, one of the most important poverty measures. We critique the Sen Index to elucidate its strengths and weaknesses and to reveal the values and biases implicit in the measure. Finally, we suggest avenues for developing poverty and inequality measurements which are superior to existing ones.