Inequality and growth: the neglected time dimension
Manuel Oechslin () and
Josef Zweimüller ()
Journal of Economic Growth, 2014, vol. 19, issue 1, 104 pages
Inequality affects economic performance through many mechanisms, both beneficial and harmful. Moreover, some of these mechanisms tend to set in fast while others are rather slow. The present paper (i) introduces a simple theoretical model to study how changes in inequality affect economic growth over different time horizons; (ii) empirically investigates the inequality–growth relationship, thereby relying on specifications derived from the theory. Our empirical findings are in line with the theoretical predictions: Higher inequality helps economic performance in the short term but reduces the growth rate of GDP per capita farther in the future. The long-run (or total) effect of higher inequality tends to be negative. Copyright Springer Science+Business Media New York 2014
Keywords: Inequality; Economic growth; Short-term effects; Long-run effects; O11; O15; O43 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (76) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
Working Paper: Inequality and growth: the neglected time dimension (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:jecgro:v:19:y:2014:i:1:p:81-104
Ordering information: This journal article can be ordered from
http://www.springer. ... th/journal/10887/PS2
Access Statistics for this article
Journal of Economic Growth is currently edited by Oded Galor
More articles in Journal of Economic Growth from Springer
Bibliographic data for series maintained by Sonal Shukla ().