Income Inequality and Institutions

The subject of the present study is the income inequality in Bulgaria from the point of view of the institutional theory. An attempt is made to nd the causes and consequences of inequality for economic development from the standpoint of this approach, which is in many respects alternative to the theses of the neoclassical trend. The author assumes the existence of the following logical connection that determines the structure of the study: competition, concentration, inequality. The natural development of the market economy leads to the concentration of production and assets in the hands of fewer and fewer people, which in turn forms minorities, elite communities. In this respect, the author‘s opinion is in line with the position of T. Picketti, who suggests that inequality is a natural consequence of the development of the market economy. D. Adjemoglu, B. Milanovic and others, whose opinions we cite on one occasion or another.