 IntroductionAlbert J. Lee ()
Chapter Chapter 1 in Taxation, Growth and Fiscal Institutions, 2012, pp 1-4 from Springer Abstract: Abstract This chapter provides a recent survey of literature on inequality and economic growth. The contemporary literature suggests that there is a complex relationship between growth and inequality and that the level of initial inequality plays an important role in defining the nature of the causal relationship. The path of the causal relationship between inequality and growth, and vice-versa, remain an area of active research. This chapter summarizes the recent theoretical advancements in this literature and identifies the role of institutions to play in explaining the causal relationship between inequality and growth. It highlights the role of fiscal institutions and emphasizes that inequality by itself is not sufficient to cause slower growth. A dynamic general equilibrium model is developed in the subsequent chapters, and the role of fiscal institutions on growth is assessed using statistical techniques. A Markovian solution is imposed on the structure of the model to overcome the problem of multiple equilibria. Keywords: Dynamic general equilibrium; Fiscal policy; Growth; Inequality; Institutions; Multiple equilibria; Political economy; Tax game (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:spbrcp:978-1-4614-1290-8_1 Ordering information: This item can be ordered from DOI: 10.1007/978-1-4614-1290-8_1 Access Statistics for this chapter More chapters in SpringerBriefs in Business from Springer |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.