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Inequality and economic growth: the perspective of the new growth theories

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Author Info
Aghion, Philippe
Caroli, Eve
Garcia-Penalosa, Cecilia

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Abstract

In this article, we review the literature focusing on the relationships between inequality and economic growth. We show that wealth inequality may be bad for growth, in particular when capital markets are imperfect and agents are heterogenous, or when some agents suffer from institutional limitations in the access to investment.

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Paper provided by CEPREMAP in its series CEPREMAP Working Papers (Couverture Orange) with number 9908.

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Length: 87 pages
Date of creation: 1999
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Handle: RePEc:cpm:cepmap:9908

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Find related papers by JEL classification:
F10 - International Economics - - Trade - - - General
L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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This page was last updated on 2009-11-8.

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