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Distribution issue. Inequality, redistribution and growth: a challenge to the conventional political economy approach. (In: Papers and Proceedings of the Tenth Annual Congress of the European Economic Association)

Saint Paul, Gilles and Verdier, Thierry (1996) Distribution issue. Inequality, redistribution and growth: a challenge to the conventional political economy approach. (In: Papers and Proceedings of the Tenth Annual Congress of the European Economic Association) European Economic Review, 40, (3-5), pp. 719-728. (doi:10.1016/0014-2921(95)00083-6).

Record type: Article

Abstract

This paper reconsiders the conventional political economy view that:
1. (1) more unequal societies tend to make more redistribution and
2. (2) more redistribution is harmful to growth.
We present a number of theoretical arguments suggesting that the two previous implications are not necessarily true and that the empirically observed negative correlation between inequality and growth might just come from the fact that more unequal societies tend to redistribute less which in turn is actually detrimental to growth.

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Published date: April 1996
Keywords: political economy, redistribution, inequality, growth

Identifiers

Local EPrints ID: 33464
URI: http://eprints.soton.ac.uk/id/eprint/33464
ISSN: 0014-2921
PURE UUID: 9dea9bdc-e8bf-4072-9dce-318fc4d7c624

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Date deposited: 14 Dec 2007
Last modified: 17 Jul 2017 15:52

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Contributors

Author: Gilles Saint Paul
Author: Thierry Verdier

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