Inequality and Growth

@article{Bnabou1996InequalityAG,
  title={Inequality and Growth},
  author={Roland B{\'e}nabou},
  journal={NBER Macroeconomics Annual},
  year={1996},
  volume={11},
  pages={11 - 74}
}
  • R. Bénabou
  • Published 1 January 1996
  • Economics
  • NBER Macroeconomics Annual
Using two unifying models and an empirical exercise, this paper presents 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-market 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… 
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