The inequality–growth plateau

C-Tier
Journal: Economics Letters
Year: 2015
Volume: 128
Issue: C
Pages: 17-20

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We examine the (potentially nonlinear) relationship between inequality and growth using a method which does not require an a priori assumption on the underlying functional form. This approach reveals a plateau completely missed by commonly used (nonlinear) parametric approaches—the economy first expands rapidly with a large decline in inequality, plateaus when inequality remains relatively stable, and then decreases rapidly with a large increase in inequality. This novel finding helps reconcile the conflicting results in the literature (using different parametric assumptions and datasets) and has important policy implications.

Technical Details

RePEc Handle
repec:eee:ecolet:v:128:y:2015:i:c:p:17-20
Journal Field
General
Author Count
3
Added to Database
2026-01-29