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Inequality, Redistribution, and Economic GrowthJosef ZweimüllerUniversity of Zurich - Department of Economics Library; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Institute for the Study of Labor (IZA) January 2000 Zurich IEER Working Paper No. 31 Abstract: 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 puzzle. I consider both the impact of the functional and the personal distribution on long-run growth rates. A final section discusses a rather neglected issue in the recent literature: the impact of expected demand for innovation decisions.
Number of Pages in PDF File: 33 Keywords: income distribution, labor share, endogenous growth, demand composition JEL Classification: D63, D9, E21, E22, E25, O15, O31 working papers seriesDate posted: October 26, 2000Suggested CitationContact Information
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