Inequality And Growth: Uncovering The Main Conclusions From The Empirics
Source: Universidade do Porto
The theme of the relationship between inequality and economic growth has gained considerable attention among economists over the last two decades. In this paper, the authors analyse the effect of inequality on growth, whose related literature has been producing inconclusive results. After an exhaustive study of the major empirical works in this specific research area, they are able not only to advance with some potential explanations for the apparent lack of consensus on the empirical assessment of the inequality-growth relationship, but also to achieve a better understanding of the nature of this relationship and the forces underlying it.