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What is Economic Development and Inequality Analysis about?

This paper presents a new perspective on the relationship between economic development and income inequality, suggesting that both are outcomes of an evolutionary process driven by improvements in transaction efficiency. It argues that there is no systematic correlation between the two, as changes in income inequality fluctuate with varying levels of specialization among individuals. The analysis also discusses policy implications, emphasizing the importance of enhancing transaction efficiency to promote ec

Author

Solomon Assefa

Language

EN