Inequality, Transfers and Growth: New Evidence from the Economic Transition in Poland

This paper challenges the conventional wisdom that inequality in Poland increased markedly during the economic transition that began in 1989-90. Using micro data from the Household Budget Surveys, we find that, after a brief spike in 1989, income and consumption inequality actually declined to below pre-transition levels during 1990-92 and then increased gradually, rising only moderately above pre-transition levels by 1997. In sharp contrast, inequality in labor earnings increased markedly and consistently throughout the 1990-97 period. We find that social transfer mechanisms, including pensions, played an important role in mitigating increases in both overall inequality and poverty. We argue that, from a political economy perspective, transfer mechanisms were well-designed to reduce political resistance to market-oriented reforms in the early years of transition, paving the way for rapid growth. Finally, we provide cross-country evidence from the transition economies that is consistent with our interpretation of the Polish experience and is also consistent with recent work in growth theory which suggests that redistribution that reduces inequality can enhance growth.

Elasticity-mediated self-organization and colloidal interactions of solid spheres with tangential anchoring in a nematic liquid crystal

Using laser tweezers and fluorescence confocal polarizing microscopy, we study colloidal interactions of solid microspheres in the nematic bulk caused by elastic distortions around the particles with strong tangential surface anchoring. The particles aggregate into chains directed at about 30 degrees to the far field director and, at higher concentrations, form complex kinetically trapped structures. We characterize the distance and angular dependencies of the colloidal interaction forces.Comment: 6 pages, 5 figure

Giant Meterwave Radio Telescope observations of an M2.8 flare: insights into the initiation of a flare-coronal mass ejection event

We present the first observations of a solar flare with the GMRT. An M2.8 flare observed at 1060 MHz with the GMRT on Nov 17 2001 was associated with a prominence eruption observed at 17 GHz by the Nobeyama radioheliograph and the initiation of a fast partial halo CME observed with the LASCO C2 coronograph. Towards the start of the eruption, we find evidence for reconnection above the prominence. Subsequently, we find evidence for rapid growth of a vertical current sheet below the erupting arcade, which is accompanied by the flare and prominence eruption.Comment: Accepted for publication in Solar Physic