aggregate relations. This paper establishes a bridge between the aggregation and the inequality and growth literature by …, implying that increases in income inequality may be unambiguously associated with temporary increases in a country’s growth …-run effects of income inequality may suffer from aggregation bias if the temporary effects of the MLD changes are not considered …

The effect of initial income inequality on growth is the subject of a large literature. We show, both analytically and … with simulation experiments, that the same level of initial income inequality can be associated with very different income … developments, depending on the source of the inequality. We consider three sources: differences in asset ownership, in productivity …