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Inequality amongst the wealthiest and its link with economic growth

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  • Philip Hans Franses

    (Econometric Institute - Erasmus University Rotterdam)

Abstract

In this paper we correlate the key features of the distribution of wealth of the 500 wealthiest individuals in the Netherlands with economic growth and stock market returns for 1998 to 2009. We show that each year the distribution obeys a power law and that the key parameter measures the degree of inequality. Our main finding is that more inequality amongst the wealthiest is associated with higher economic growth.

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  • Philip Hans Franses, 2011. "Inequality amongst the wealthiest and its link with economic growth," Post-Print hal-00708543, HAL.
    • Handle: RePEc:hal:journl:hal-00708543
    DOI: 10.1080/00036846.2011.566211
    Note: View the original document on HAL open archive server: https://hal.science/hal-00708543
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    1. Castaldi, Carolina & Milakovic, Mishael, 2007. "Turnover activity in wealth portfolios," Journal of Economic Behavior & Organization, Elsevier, vol. 63(3), pages 537-552, July.
    2. Davies, James B. & Shorrocks, Anthony F., 2000. "The distribution of wealth," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 11, pages 605-675, Elsevier.
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    5. Eric Neumayer, 2004. "The super-rich in global perspective: a quantitative analysis of the Forbes list of billionaires," Applied Economics Letters, Taylor & Francis Journals, vol. 11(13), pages 793-796.
    6. Barro, Robert J, 2000. "Inequality and Growth in a Panel of Countries," Journal of Economic Growth, Springer, vol. 5(1), pages 5-32, March.
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