Skewness, Growth and the Elimination of Poverty
Several recent papers on the political economy of growth have argued that increased skewness in the distribution of wealth/income induces slower growth. In the present model, investment, viewed as education, comes from two sources : a public component, financed by taxes and equally distributed across all citizens, and a private one, chosen optimally by the individual. The growth rate is shown to rise with increased skewness.
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