Inequality and Growth

@article{Bnabou1996InequalityAG,
  title={Inequality and Growth},
  author={Roland B{\'e}nabou},
  journal={Macroeconomics eJournal},
  year={1996}
}
  • Roland Bénabou
  • Published 1996
  • Economics
  • Macroeconomics eJournal
  • Using two unifying models and an empirical exercise, this paper present and extends the main theories linking income distribution and growth, as well as the relevant empirical evidence. The first model integrates the political economy and imperfect capital markets theories. It allows for explicit departures from perfect democracy and embodies the tradeoff between the growth costs and benefits of redistribution through taxes, land reform or public schooling: such policies simultaneously depress… CONTINUE READING

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