If redistribution is distortionary, and if the income of skilled workers is due to knowledge-intensive activities and … reduction reduces statis inefficiency. On the other hand, standard redistribution also reduces the level of R&D because it … that standard redistribution always dominates limitations to IPRs. …

This paper studies the impact of income inequality on fiscal conservatism when an increase in inequality affects the …, inequality will then be associated with less, rather than more, redistributive taxation. Furthermore, if the poor are liquidity … constrained then the positive association between inequality and fiscal conservatism will increase the persistence in the dynamics …

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 … and benefits of redistribution through taxes, land reform or public schooling: such policies simultaneously depress …

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 … costs and benefits of redistribution are generally of the same order of magnitude, resulting in reasonable values for the …

. The main results are that for a given structure of political rights, more inequality may be good for growth if it implies … distribution; growth and inequality tend to decrease along the convergence path in the absence of political or distributional … inequality and growth. …

excessive flexibility, resulting in suboptimal growth or even self-sustaining technology-inequality traps. Fourth, I examine how …, institutional and technological structure. I develop here a unified model to analyse these interactions and their growth … US-style ‘laissez-faire’ social contracts sustainable; I also compare the growth rates of these two politico …

exploit this fact to identify the impact of opening a rural bank on poverty and output. Our estimates suggest that the Indian … rural branch expansion programme significantly lowered rural poverty, and increased non-agricultural output. …

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 …

, 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 …

curve in many Western economies during this period, with the fall in inequality following redistribution due to … widespread social unrest and revolution. Political transition, rather than redistribution under existing political institutions … political equilibria and acts as a commitment to redistribution. Our theory also offers a novel explanation for the Kuznets …