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 …

Inequality affects economic performance through many mechanisms, both beneficial and harmful. Moreover, some of these … how changes in inequality affect economic growth over different time horizons; (ii) empirically investigates the … inequality–growth relationship, thereby relying on specifications derived from the theory. Our empirical findings are in line …

more narrow range of low-quality mass products. In this framework, inequality affects the composition of R&D through price … and market size effects. The inequality–growth relationship depends on how mass production affects productivity; and on … the particular dimension of inequality (income gaps versus income concentration). Our model is sufficiently tractable to …

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

We utilize Schmookler’s (1966) concept of demand-induced invention to study the role of income inequality in an … distribution of income affects the incentive to innovate and hence long-run growth. In general, less inequality tends to discourage …

This paper analyses the impact of inequality on growth when technical progress is driven by innovations. It is assumed … that consumers have hierarchic preferences. As a result inequality affects demand and therefore the incentive to innovate …. Whether more inequality is harmful or beneficial for growth depends on the initial distribution. Complementarities between a …