strong incentives for product innovations (new luxuries). We show that the inequality-growth relationship depends on which …

When it comes to the inequality-growth relationship, the empirical literature offers contradictory assessments … of inequality while the level-based estimators also incorporate the negative consequences - which require more time to … materialize. Thus, the latter estimates come close to reflect the adverse overall impact of inequality in the long run. …

This paper studies the impact of income inequality on the level of innovative activities in a model where innovations …