distribution of income affects the incentive to innovate and hence long-run growth. In general, less inequality tends to discourage …We utilize Schmookler’s (1966) concept of demand-induced invention to study the role of income inequality in an … endogenous growth model. As rich consumers can satisfy more wants than poor consumers, both prices and market sizes for new …

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 departures from perfect democracy and embodies the trade-off between the growth costs … savings incentives and ameliorate the wealth constraints that impede investment by the poor. The second model is a growth …

growth. The analysis demonstrates that the interplay between technological progress and two components that determine … growth. In periods of major technological inventions the ability effect is the dominating factor. The decline in the relative … importance of initial parental conditions (i.e. the driving force behind the persistence of inequality) enhances mobility and …

for missing credit and insurance markets. The resulting tradeoffs for growth and efficiency are explored, both … to higher income growth than taxes and transfers, but at the cost of lower insurance. Overall efficiency is assessed …

, which provides an integrated framework for analysing the local determinants of inequality and growth. Five main conclusions … inequality in education and income more persistent across generations. Whether the same is true of inequality in total wealth … resulting from individual residential decisions can be quite inefficient, both from the point of view of aggregate growth and in …

This paper analyses the impact of inequality on growth when technical progress is driven by innovations. It is assumed …. Whether more inequality is harmful or beneficial for growth depends on the initial distribution. Complementarities between a … that consumers have hierarchic preferences. As a result inequality affects demand and therefore the incentive to innovate …

This paper studies the impact of income inequality on the level of innovative activity in a model where innovations … favourable for innovation incentives. This is consistent with empirical evidence, suggesting that countries with a more equal …

distorts occupational choice. We study this possibility in the context of a model with horizontal innovation, where the …

or societal laws benefiting religious citizens. Rising income inequality can, however, lead some of the rich to form a …

“cutthroat”capitalism that generates greater inequality and more innovation and will become the technology leaders, while others …Because of their more limited inequality and more comprehensive social welfare systems, many perceive average welfare … theoretical answers to this question, we develop a simple model of economic growth in a world in which all countries bene…t and …