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

  • Aghion, Philippe
  • Caroli, Eve
  • Garcia-Penalosa, Cecilia

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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File URL: http://www.cepremap.fr/depot/couv_orange/co9908.ps
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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
Date of revision:
Handle: RePEc:cpm:cepmap:9908
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