Is Inequality Harmful for Growth?

@article{citeulike:115366, abstract = {Is inequality harmful for growth? We suggest that it is. In a society where distributional conflict is important, political decisions produce economic policies that tax investment and growth-promoting activities in order to redistribute income. The paper formulates a theoretical model that captures this idea. The model's implications are supported by the evidence. Both historical panel data and postwar cross sections indicate a significant and large negative relation between inequality and growth. This relation is only present in democracies.}, author = {Persson, Torsten and Tabellini, Guido}, citeulike-article-id = {115366}, journal = {The American Economic Review}, keywords = {growth, macroeconomics, public\_economics}, number = {3}, pages = {600--621}, posted-at = {2005-03-06 16:49:55}, priority = {2}, title = {Is Inequality Harmful for Growth?}, url = {http://www.jstor.org/stable/2118070}, volume = {84}, year = {1994} }

TY - JOUR ID - citeulike:115366 L3 - citeulike-article-id:115366 N2 - Is inequality harmful for growth? We suggest that it is. In a society where distributional conflict is important, political decisions produce economic policies that tax investment and growth-promoting activities in order to redistribute income. The paper formulates a theoretical model that captures this idea. The model's implications are supported by the evidence. Both historical panel data and postwar cross sections indicate a significant and large negative relation between inequality and growth. This relation is only present in democracies. IS - 3 JF - The American Economic Review EP - 621 TI - Is Inequality Harmful for Growth? VL - 84 SP - 600 KW - growth KW - macroeconomics KW - public_economics AU - Persson, Torsten AU - Tabellini, Guido PY - 1994/// UR - http://www.jstor.org/stable/2118070 ER -