01807cas a2200253 a 4500 AALejournalIMF004694 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451865813 1018-5941 BD-DhAAL BD-DhAAL Cordoba, Juan Carlos. Lucas vs. Lucas : On Inequality and Growth / Juan Carlos Cordoba, Genevieve Verdier. Washington, D.C. : International Monetary Fund, 2007. 1 online resource (39 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Lucas (2004) asserts that "Of the tendencies that are harmful to sound economics, the most seductive, and in my opinion the most poisonous, is to focus on questions of distribution... The potential for improving the lives of poor people by finding different ways of distributing current production is nothing compared to the apparently limitless potential of increasing production." In this paper we evaluate this claim using an extended version of Lucas' (1987) welfare-evaluation framework. Surprisingly, we find that the welfare costs of inequality outweigh the benefits of growth in most cases. These calculations support the case for a research agenda that treats not only growth but also inequality as a priority. Mode of access: Internet Verdier, Genevieve. IMF Working Papers; Working Paper ; No. 2007/017 Full text available on IMF http://elibrary.imf.org/view/journals/001/2007/017/001.2007.issue-017-en.xml IMF e-Library