economy model with income inequality, social transfers, and default risk to rationalize this fact. Without default risk … transfers are countercyclical, inequality is procyclical, and external debt is used to smooth distortionary taxation. With … become procyclical and inequality worsens during times when risk premia are high. We confirm the predictions of the model in …

This paper builds on Yang et al (2021) which analysed the effect of wealth inequality on UK economic growth in recent …

inequality-growth nexus. By carrying out fixed effects estimations on a cross-country panel, we find that both institutional … innovations on growth and inequality diminish as institutions increase in quality, and the effects of institutions can be … influenced by level of innovations. This indicates that while institutions and innovations can be inequality-inducing, their …

This paper investigates the long-run nexus between wealth inequality and aggregate output using a DSGE model in which … wealth inequality endogenously affects individual entrepreneurship incentives, thereby influencing aggregate output. Our … inequality dynamics in the UK. Directly removing entrepreneurial barriers or indirectly providing government grant support to the …