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The Growth-Inequality Nexus without Borrowing Restrictions and Government Intervention: Some Implications from a Prototype Model

Isaac Ehrlich () and Chi-Wa Yuen ()
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Chi-Wa Yuen: School of Economics and Finance, University of Hong Kong

Annals of Economics and Finance, 2000, vol. 1, issue 2, 283-301

Abstract: Using a prototype human capital based growth model without borrowing restrictions and government intervention, we study the dynamic evolution of aggregate output and income inequality. We show how even barebones models can yield some testable implications about the growth-inequality relation that may square nicely with the empirical reality. We also provide some useful speculations about this relation over different stages of economic development.

Keywords: Endogenous growth; Income inequality; Human capital; Family economics; Barebones model (search for similar items in EconPapers)
JEL-codes: D31 J24 O41 (search for similar items in EconPapers)
Date: 2000
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