Title: Inequality and Growth: A Schumpeterian Perspective ¤
Abstract:The aim of this paper is to analyse the eect of income inequality on long- run economic growth when it is driven by endogenous technological advance. The model employed emphasises the strategic intera...The aim of this paper is to analyse the eect of income inequality on long- run economic growth when it is driven by endogenous technological advance. The model employed emphasises the strategic interactions between competing …rms in the product market and indivisibility which characterises many high-tech goods. Widening inequality is harmful for growth in a monopoly but bene…cial in a Bertrand duopoly, giving a V-shaped relationship between growth and inequality. This also implies that the growth rate is not necessarily higher in a concentrated market structure than in a less concentrated one.Read More
Publication Year: 1998
Publication Date: 1998-02-01
Language: en
Type: preprint
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Cited By Count: 20
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