کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
5058827 | 1476635 | 2015 | 4 صفحه PDF | دانلود رایگان |
![عکس صفحه اول مقاله: The inequality-growth plateau The inequality-growth plateau](/preview/png/5058827.png)
- We find a nonlinear relationship between economic growth and inequality.
- We reject nonlinear parametric specifications versus a nonparametric alternative.
- We find three separate regions where inequality is either beneficial, irrelevant or hampers economic growth.
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.
Journal: Economics Letters - Volume 128, March 2015, Pages 17-20