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 …

, unemployment and productivity growth. This paper brings together available evidence in an attempt to evaluate the welfare effects … of the Thatcher reforms. The estimated impact turns out to be sensitive to the degree of `inequality aversion' of the …

This paper examines how economic stratification affects inequality and growth over time. It studies economies where …-wide linkages (complementary skills, knowledge spillovers). It compares growth and welfare when families are stratified into … slower growth in the short run, but to higher output or even productivity growth in the long run. This trade-off occurs 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 …

curve in many Western economies during this period, with the fall in inequality following redistribution due to …

and economic growth. Individuals (who differ in abilities) live for two periods, working when young and owning capital … in time. In politico-economic equilibrium, more inequality (in terms of the skewedness of the distribution) yields a … lower pollution tax, a larger capital tax, and lower growth. …

strong incentives for product innovations (new luxuries). We show that the inequality-growth relationship depends on which …We study a model of endogenous growth where firms invest both in product and process innovations. Product innovations … balanced growth path. …

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 …

Is inequality harmful for growth? We suggest that it is. In a society where distributional conflict is important … negative relation between inequality and growth. After a comprehensive sensitivity analysis, we conclude that our findings are … activities which promote growth, such as the accumulation of capital and productive knowledge. In this paper we formulate a …