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correlated with faster and more durable growth, for a given level of redistribution. 3. Redistribution appears generally benign … on growth. Thus the combined direct and indirect effects of redistribution – including the growth effects of the … between redistribution and growth. The best available macroeconomic data do not support that conclusion …
Persistent link: https://www.econbiz.de/10014144640
A model of endogenous growth is presented, based on productive public expenditures, and featuring some degree of income inequality, and polarization in policy preferences. The main innovation lays in the political process determining capital taxation that relies, both on voting and on "influence...
Persistent link: https://www.econbiz.de/10014461501
Recently, some influential empirical studies found evidence in favour of a negative relationship between income inequality and economic growth, implying the conclusion that inequality reducing policies will foster economic growth. The studies have in common that they all rely on the System GMM...
Persistent link: https://www.econbiz.de/10011627022
This paper provides a critical review of the recent literature on inequality and growth. After discussing historical and more recent distributional trends as well as empirical evidence on the relationship between inequality and growth, I focus on recent explanations of the inequality-growth...
Persistent link: https://www.econbiz.de/10014155246
We incorporate the division of income between capital and labor into analysis on the relationship between inequality and growth. Using historical data, we document that changes in the top 1 % income shares are positively associated with subsequent growth of per capita GDP when the capital share...
Persistent link: https://www.econbiz.de/10013239632
taxation. Furthermore, from a Keynesian macroeconomic perspective redistribution may even be systematically conducive to growth … and employment. At the same time a change towards such a policy of redistribution may for some economies, particularly the … erhebliche Spielräume für steuerpolitische Umverteilung gibt. Zudem kann Umverteilung aus einer keynesianischen makroökonomischen …
Persistent link: https://www.econbiz.de/10010519198
This paper analyzes the political economy of redistribution between two income groups in a dynamic economy and provides … redistribution and growth is non-monotonic. Moreover, it is shown that in the presence of investment indivisibilities in human … capital and missing capital markets, both the pressure for redistribution and the initial wealth distribution affect economic …
Persistent link: https://www.econbiz.de/10014068613
, and redistribution. Much of the problem stems from model uncertainty about what covariates to use, the relationships … inequality, redistribution, and the duration of growth spells in the presence of a rich set of alternative determinants, by … robustly correlated with longer growth spells. Redistribution appears generally benign for growth spells, but the effect is not …
Persistent link: https://www.econbiz.de/10012942257
Technological change causes three consequences: it guarantees economic growth, it requires employees to acquire more skills and human capital, and it increases inequality if employees are not capable adapting to new technologies. The second consequence makes it almost necessary for employees to...
Persistent link: https://www.econbiz.de/10011849808
This paper examines the implications of automation capital in a Solow growth model with two types of labour. We study the transition from standard production to production using automation capital which substitutes low-skilled workers. We assume that despite advances in technology, AI and...
Persistent link: https://www.econbiz.de/10012125628