• DOI:10.1016/0014-2921(95)00030-5
Corpus ID: 51838517

Income Distribution, Political Instability, and Investment

@inproceedings{Alesina1993IncomeDP,
  title={Income Distribution, Political Instability, and Investment},
  author={A. Alesina and R. Perotti},
  year={1993}
}

A. Alesina, R. Perotti

Published 1993

Economics

This paper successfully tests on a sample of 70 countries for the period 1960-85 the following hypotheses. Income inequality, by fueling social discontent, increases socio-political instability. The latter, by creating uncertainty in the politico-economic environment, reduces investment. As a consequence, income inequality and investment are inversely related. Since investment is a primary engine of growth, this paper identifies a channel for an inverse relationship between income inequality… CONTINUE READING

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