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Tolerance for inequality: Hirschman's tunnel effect revisited

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  • Wannaphong Durongkaveroj

Abstract

Along the path of economic development, advancement of some groups naturally generates economic disparity in society. The concurrent presence of both winners and losers invariably give rise to the psychologically economic question of how the losers perceive and respond to the benefits of development. The ‘tunnel effect’ proposed by Hirschman provides valuable insights for understanding the changing tolerance of economic inequality in the process of economic development. This paper critically discusses this proposition, reviews the related literature, and provides possible extensions. © 2018 John Wiley & Sons, Ltd.

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  • Wannaphong Durongkaveroj, 2018. "Tolerance for inequality: Hirschman's tunnel effect revisited," Journal of International Development, John Wiley & Sons, Ltd., vol. 30(7), pages 1240-1247, October.
    • Handle: RePEc:wly:jintdv:v:30:y:2018:i:7:p:1240-1247
    DOI: 10.1002/jid.3389
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    More about this item

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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