Inequality and Growth: Theoretical Aspects of Dependence

Неравенство и экономический рост: теоретические аспекты зависимости

Lubimov, I.L. (Любимов, И.Л.) (lubimov@ranepa.ru)
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Lubimov, I.L. (Любимов, И.Л.): Russian Presidential Academy of National Economy and Public Administration (RANEPA)

Working Papers from Russian Presidential Academy of National Economy and Public Administration

Abstract: In this paper, a comprehensive analysis and systematization of theoretical and empirical studies of foreign authors on the issue of the relationship between income inequality and economic growth. The most common in the literature of channels of influence of income inequality on economic growth can be combined in the next (four) groups: political and economic mechanism that links income inequality with the pace of economic growth through redistribution policy, the channel associated with the imperfection of the capital market, a mechanism that establishes the relationship between income inequality and the rate of economic growth through social and political instability, and finally, a channel in which income inequality affects economic growth through the selection of the level of fertility of individuals. As a result of this analysis, the authors form a database summarizing the theoretical mechanisms of the relationship between growth and inequality.

Keywords: income inequality; economic growth (search for similar items in EconPapers)
Pages: 67 pages
Date: 2016-04-20
New Economics Papers: this item is included in nep-gro
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