The aim of this two-volume book is to analyze the current state of global and regional inequality, dissect the phenomenal increase in inequality that we have seen occur in recent times, and better understand the complex relationship between inequality and development.

Introduction: Inequality and Growth: A Preamble; Kaushik Basu, Joseph E. Stiglitz and Vivian Hon 1. New Theoretical Perspectives on the Distribution of Income and Wealth Among Individuals; Joseph E. Stiglitz 2. Reflections on the 'Equity and Development' World Development Report Ten Years Later; Francois BourguignonCommentary: Equity and Development: Revisiting the 2006 World Development Report; Martin Ravallion3. Person Equivalent Headcount Measures of Poverty; Tony Castleman, James E. Foster and Stephen C. SmithComments on 'Person Equivalent Headcount Measures of Poverty'; Bhaskar Dutta4. How Useful is Inequality of Opportunity as a Policy Construct?; Ravi Kanbur and Adam WagstaffComments on 'How Useful is Inequality of Opportunity as a Policy Construct?; Aristomene Varoudakis 5. Towards a New Definition of Shared Prosperity: A Dynamic Perspective from Three Countries; Hai-Anh H. Dang and Peter Lanjouw Comments on 'Welfare Dynamics Measurement: Two Definitions of a Vulnerability Line and their Applications'; Sudhir Anand6. Behavioral Economics and Social Exclusion: Can Interventions Overcome Prejudice?; Karla HoffOrigin and Evolution of Cognitive Frames: Comments on 'Behavioral Economics and Social Exclusion: Can Interventions Overcome Prejudice?'; Paola Giuliano7. The Effects of Fiscal Redistribution; Michele Battisti and Joseph ZeiraComments on 'The Effects of Fiscal Redistribution'; James E. Foster8. Inequality of Happiness: Evidence of the Compression of the Subjective Well-being Distribution with Economic Growth; John Ifcher and Homa Zarghamee Why focus on Subjective Well-Being inequality?: Comments on 'Inequality of Happiness: Evidence of the Compression of the Subjective Well-being Distribution with Economic Growth'; Murray Leibbrandt

It was a part of the wisdom of mainstream economics that in the early stages of development inequality would rise but as growth persisted, it would, eventually, decline. Early evidence seemed to suggest that this pattern would be borne out. But, as time passed and growth persisted, inequality continued to grow, casting doubt on the received wisdom. The aim of this two-volume book is to analyze the current state of global and regional inequality, dissect the phenomenal increase in inequality that we have seen occur in recent times, and better understand the complex relationship between inequality and development. The political instability and conflict that we see around the world, arguably, has connection to economic deprivation of large segments of society and the perception of marginalization. This two-volume work acquires a special significance in the light of these developments.

Joseph Stiglitz is an extremely highprofile and wellregarded economist who won the Nobel Prize for Economic Sciences in 2001. Kaushik Basu is also a very wellknown and respected economist who currently holds the position of Chief Economist and Senior Vice President of the World Bank. Numerous influential economists and policy makers contribute to this volume, providing a thorough and comprehensive insight into the links between economic development and inequality.