Operationalizing Inclusive Growth: Per-Percentile Diagnostics to Inform Redistribution Policies

IMF Working Paper 20/50

Operationalizing Inclusive Growth: Per-Percentile Diagnostics to Inform Redistribution Policies.

Inclusive growth, narrowly defined in this paper as growth that helps reduce inequality, is achieved if consumption of the poor increases faster than consumption of the rich. The paper presents a simple accounting framework for a per-percentile consumption diagnostics that could inform redistribution policies. The proposed framework is illustrated in application to Iraq and Tunisia.