Centre for Development Economics
Department of Economics, Delhi School of Economics


Income Inequality and the Quality of Public Services:
A Developing Country Perspective


Sukanta Bhattacharya
University of Calcutta

Thursday, March 22, 2012 at 3:00 p.m.

Venue : AMEX Conference Room (Second Floor)
Department of Economics, Delhi School of Economics

All are cordially invited


That the high growth, rising inequality phenomenon – experienced by many high growth developing economies in the recent past – may lead to discontent among the poor is a well-discussed issue. This paper argues that as the demand for higher quality of the public services rises with income, the rising income in the hands of the rich leads to dissatisfaction among the rich about the quality of available public services, inducing them to form their own club for self-provision of the public services whenever possible. But this results in a lowering of quality available to the others outside the club despite less crowding at the publicly provided facilities.