Inequality and growth: A joint analysis of demand and supply

Ling Shen

No 30, Proceedings of the German Development Economics Conference, Kiel 2005 from Verein für Socialpolitik, Research Committee Development Economics

Abstract: The paper contributes to the literature of income inequality and economic growth in two directions. First, it analyzes the impact of income inequality on economic growth both through the supply of human capital and the incentive to invent induced by the demand for better quality goods. Secondly, I decompose Gini-coefficient in two variables, which have different effect on the economic performance. Thus, our result suggests that the empirical research on the base of Gini-coefficient can not generate an overall relationship between income inequality and economic growth.

Date: 2005
New Economics Papers: this item is included in nep-dev
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:gdec05:3503

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