Work

Is Inequality Harmful for Growth

Year: 1993

Type: preprint

Abstract: Is inequality harmful for growth? The authors suggest that it is. In a society where distributional conflict is important, political decisions produce economic policies that tax investment and growth-promoting activities in order to redistribute income. The paper formulates a theoretical model that captures this idea. The model's implications are supported by the evidence. Both historical panel data and postwar cross-sections indicate a significant and large negative relation between inequality and growth. This relation is only present in democracies. Copyright 1994 by American Economic Association.

Source: RePEc: Research Papers in Economics

Authors: Torsten Persson, Guido Tabellini

Language: English

Topic: Income, Poverty, and Inequality

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDGs: Reduced inequalities, Peace, justice, and strong institutions

Open Access status: green

OpenAlex ID: W1606964474

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Cited by: 2,648

Related to: 10