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WP/057 On the ‘Inclusiveness’ of India’s Consumption Expenditure Growth

This paper reviews the evidence on the ‘inclusiveness’ of the growth in consumption expenditure that has occurred in India over the last four decades or so. The notion of dynamic inclusiveness is framed in terms of imagined normative allocations of the inter-temporal product of growth, as dictated by notions of equity of varying orders of demandingness. There are analytical parallels between these exercises and those involved in the study of bankruptcy in ‘Talmudic estate problems’, as well as in the determination of optimal anti-poverty budgetary allocations. The issue of inclusive growth is reviewed in this paper with respect to inclusiveness across both income classes and social groups such as caste and occupation. The results of the investigation undertaken in the essay suggest distressingly little evidence of inclusiveness in India’s consumption growth experience.
Publisher:
UNU-WIDER
Series:
WIDER Working Paper
Volume:
2012/57
Title:
WP/057 On the ‘Inclusiveness’ of India’s Consumption Expenditure Growth
Authors:
D. Jayaraj and S. Subramanian
Publication date:
June 2012
ISBN 13 Web:
978-92-9230-520-8
Copyright holder:
© UNU-WIDER
Copyright year:
2012
Keywords:
absolute inequality, relative inequality, equal division rule, vertical inclusiveness, horizontal inclusiveness
JEL:
D30, D31, O15, O40
Project:
New Directions in Development Economics (2010)
Sponsor:
This study has been prepared within the UNU-WIDER project ‘New Directions in Development Economics’. UNU-WIDER gratefully acknowledges the financial contributions to the research programme by the governments of Denmark (Royal Ministry of Foreign Affairs), Finland (Ministry for Foreign Affairs), Sweden (Swedish International Development Cooperation Agency—Sida) and the United Kingdom (Department for International Development—DFID).
Format:
online
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