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 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 …

orthodox economic theory. Our argument is based on the assumptions of monopolistic competition and that utility derived from … modern capitalist society, productivity is so high that many people are nearly saturated with goods;" ``Productivity growth … reduces the real consumption wage of workers;" and ``The benefits from growth are appropriated by symbol manipulators …

findings indicate that increases in national income have a significant moderating effect on income inequality: a one percent … could help reduce income inequality. …