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Redistribution and Growth; Pareto Improvements

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Author Info
Talmain, G.
Chou, C.F.

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Abstract

This paper introduces heterogeneous households who have preferences for leisure into Grossman and Helpman's model of endogenous growth. Wealth distribution affects the endogenous rate of growth as the labor supply of each individual responds inversely to his permanent income. When the labor Engel curve is concave [convex], unequal wealth distribution decreases [increases] the rate of growth. Pareto- improving-growth-enhancing wealth redistributions are characterized.

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Publisher Info
Paper provided by UBC Department of Economics in its series UBC Departmental Archives with number 96-03.

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Length: 20 pages
Date of creation: 1996
Date of revision:
Handle: RePEc:ubc:bricol:96-03

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Related research
Keywords: ECONOMIC GROWTH; WEALTH; HOUSEHOLD;

Other versions of this item:

Find related papers by JEL classification:
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
D90 - Microeconomics - - Intertemporal Choice and Growth - - - General
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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  1. Reto Foellmi und Josef Zweimüller, . "Inequality and Economic Growth - European Versus U.S. Experiences," IEW - Working Papers iewwp158, Institute for Empirical Research in Economics - IEW. [Downloadable!]
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  2. Chu, Angus C., 2009. "Global poverty reduction and Pareto-improving redistribution," MPRA Paper 16809, University Library of Munich, Germany. [Downloadable!]
  3. Foellmi, Reto & Zweimüller, Josef, 2005. "Income Distribution and Demand-Induced Innovations," CEPR Discussion Papers 4985, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  4. Guido Cozzi, 2008. "Why the Rich Should Like R&D Less," Working Papers 2009_14, Department of Economics, University of Glasgow, revised Aug 2008. [Downloadable!]
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  5. Hatipoglu, Ozan, 2008. "Patent, Inequality and Innovation-Driven Growth," MPRA Paper 7855, University Library of Munich, Germany. [Downloadable!]
  6. Ozan Hatipoglu, 2007. "A Demand Based Theory of Income Distribution and Growth," Working Papers 2007/08, Bogazici University, Department of Economics. [Downloadable!]
  7. Debasis Bandyopadhyay & Parantap Basu, 2000. "The Growth-Inequality Relationship in a Model with Discrete Occupational Choice and Redistributive Tax," Econometric Society World Congress 2000 Contributed Papers 0809, Econometric Society. [Downloadable!]
  8. Josef Zweimueller, . "Inequality, Redistribution, and Economic Growth," IEW - Working Papers iewwp031, Institute for Empirical Research in Economics - IEW. [Downloadable!]
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  9. Cecilia García-Peñalosa & Jean-François Wen, 2008. "Redistribution and entrepreneurship with Schumpeterian growth," Journal of Economic Growth, Springer, vol. 13(1), pages 57-80, March. [Downloadable!] (restricted)
  10. Foellmi, Reto & Zweimüller, Josef, 2002. "Structural Change and the Kaldor Facts of Economic Growth," IZA Discussion Papers 472, Institute for the Study of Labor (IZA). [Downloadable!]
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  11. Oded Galor, 2009. "Inequality and Economic Development: An Overview," Working Papers 2009-3, Brown University, Department of Economics. [Downloadable!]
  12. Chu, Angus C. & Peng, Shin-Kun, 2009. "Effects of TRIPS on Growth, Welfare and Income Inequality in an R&D-Growth Model," MPRA Paper 10956, University Library of Munich, Germany. [Downloadable!]
  13. Reto Foellmi & Joseph Zweimüller, 2006. "Mass Consumption, Exclusion, and Unemployment," IEW - Working Papers iewwp296, Institute for Empirical Research in Economics - IEW. [Downloadable!]
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  14. Cecilia Garcia-Peñalosa & Jean-François Wen, 2004. "Redistribution and Occupational Choice in a Schumpeterian Growth Model," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  15. Ozan Hatipoglu, 2007. "Inequality and Growth. Where Are We Headed? A Survey," Working Papers 2007/07, Bogazici University, Department of Economics. [Downloadable!]
  16. Hyoungsoo Zang, 1997. "Technology Transfer, Income Distribution and the Process of Economic Development," Open Economies Review, Springer, vol. 8(3), pages 245-270, July. [Downloadable!] (restricted)
  17. Josef Zweimueller, . "Schumpeterian Entrepreneurs Meet Engel's Law: The Impact of Inequality on Innovation-Driven Growth," IEW - Working Papers iewwp009, Institute for Empirical Research in Economics - IEW. [Downloadable!]
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  18. Chu, Angus C., 2009. "Effects of Patent Policy on Income and Consumption Inequality in an R&D-Growth Model," MPRA Paper 10168, University Library of Munich, Germany. [Downloadable!]
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