Inequality and the duration of growth

Artikel

The relationship between income inequality and economic growth is complex. Some inequality is integral to the effective functioning of a market economy and the incentives needed for investment and growth. But inequality can also be destructive to growth, for example by amplifying the risk of crisis or making it difficult for the poor to invest in education. This paper finds that the duration of growth spells is robustly associated with more equality in the income distribution. Inequality matters, moreover, even when other determinants of growth duration – external shocks, initial income, institutional quality, openness to trade, and macroeconomic stability – are taken into account.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: European Journal of Economics and Economic Policies: Intervention (EJEEP) ; ISSN: 2052-7772 ; Volume: 12 ; Year: 2015 ; Issue: 2 ; Pages: 147-157

Classification and Topics

• Classification: Wirtschaft ; Macroeconomic Analyses of Economic Development ; Economic Development: Human Resources; Human Development; Income Distribution; Migration ; Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence ; Fiscal Policy ; Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
• Subject: inequality ; redistribution ; economic growth

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ostry, Jonathan D.
• Event: Veröffentlichung
• (who): Edward Elgar Publishing
• (where): Cheltenham
• (when): 2015

Further information

• DOI: doi:10.4337/ejeep.2015.02.01
• Handle: http://hdl.handle.net/10419/277325
• Last update: 10.03.2025, 11:42 AM CET