The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Growth and Inequality (Macro Perspectives)

  • Vincenzo Quadrini
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2078

Abstract

This article provides a review of studies that examine the relationship between economic growth and inequality. These studies are divided into two groups. The first emphasizes the channels through which inequality affects growth, while the second emphasizes the opposite channel, where economic growth affects inequality. Although several empirical studies find a significant correlation between inequality and growth, it is still an open question as to whether the correlation is driven by the first or the second channel.

Keywords

Constitutions, economic approach to Creative destruction Distortionary taxes Economic growth Education Endogenous growth theory Entrepreneurship Equity–efficiency trade-off Expropriation Growth and inequality Human capital Income smoothing Increasing returns Inequality Innovation Kuznets, S. Policy reform Redistribution of income and wealth Skill-biased technical change Wage inequality 

JEL Classifications

D4 D10 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Vincenzo Quadrini
    • 1
  1. 1.