Effects of Wealth Inequality and Segregation on Economic Growth: An Interpretation via Luxury Asset Holdings

Laura Policardo and Edgar Sánchez Carrera ()

Working Papers - Economics from Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa

Abstract: The lack of data has challenged the study of the effect of wealth inequality on economic growth despite it being at the core of the international debate. Scholars have not found a unanimous effect of wealth inequality on economic growth for the last few years. In this paper, we provide a possible explanation of why wealth inequality might have a different effect on growth in different countries. So, we claim that a possible reason for such different effects could be the different socio-economic structure of the population and, more precisely, the level of economic segregation. We prove this effect with numerical simulations calibrated on accurate data.

Keywords: Economic Growth; Wealth Inequality; Luxury Non-productive Assets; United States; France; Residential Segregation. (search for similar items in EconPapers)
JEL-codes: D31 O47 O51 O52 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2024
New Economics Papers: this item is included in nep-eur, nep-fdg and nep-gro
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.disei.unifi.it/upload/sub/pubblicazioni/repec/pdf/wp09_2024.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:frz:wpaper:wp2024_09.rdf

Access Statistics for this paper

More papers in Working Papers - Economics from Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa Via delle Pandette 9 50127 - Firenze - Italy. Contact information at EDIRC.
Bibliographic data for series maintained by Giorgio Ricchiuti ().