32 Pages Posted: 10 Nov 2007
Date Written: November 2007
This brief chapter surveys some of the economic literature concerning the instrumental costs of material inequality. Economic theory predicts, and econometric evidence finds, that inequality increases crime and political corruption and, in certain circumstances, constrains growth.
Suggested Citation: Suggested Citation
McAdams, Richard H., Economic Costs of Inequality (November 2007). U of Chicago Law & Economics, Olin Working Paper No. 370; U of Chicago, Public Law Working Paper No. 189. Available at SSRN: https://ssrn.com/abstract=1028874 or http://dx.doi.org/10.2139/ssrn.1028874