Income inequality and economic growth—the Kuznets curve revisited |
| |
Authors: | Heng Yin Liutang Gong Heng-fu Zou |
| |
Institution: | (1) School of Economics, Beijing Normal University, Beijing, 100875, China;(2) Guanghua School of Management, Peking University, Beijing, 100871, China;(3) Guanghua School of Management, Peking University, Beijing, 100871, China |
| |
Abstract: | In a neoclassical growth framework with a typical political-economy mechanism, this paper reexamines the relationship between
the income inequality and economic growth by introducing government spending into the production function and the utility
function. It demonstrates that Kuznets’ famous inverted-U shape relationship between inequality and economic growth will hold—the
growth rate will be first increasing with the income inequality before the growth rate decreases with inequality.
__________
Translated from The Journal of World Economy (世界经济), 2005,(5) (in Chinese) |
| |
Keywords: | income distribution growth political-economy mechanism |
本文献已被 万方数据 SpringerLink 等数据库收录! |
|