Innovation and Inequality from Stagnation to Growth

Angus Chu and Pietro Peretto

MPRA Paper from University Library of Munich, Germany

Abstract: This study explores the evolution of income inequality in an economy featuring an endogenous transition from stagnation to growth. We incorporate heterogenous households into a Schumpeterian model of endogenous takeoff. In the pre-industrial era, the economy is in stagnation, and income inequality is determined by an unequal distribution of land ownership and remains stationary. When takeoff occurs, the economy experiences innovation and economic growth. In this industrial era, income inequality gradually rises until the economy reaches the balanced growth path. Finally, we calibrate the model for a quantitative analysis and compare the simulation results to historical data in the UK.

Keywords: income inequality; innovation; economic growth; endogenous takeoff (search for similar items in EconPapers)
JEL-codes: D3 O3 O4 (search for similar items in EconPapers)
Date: 2019-09
New Economics Papers: this item is included in nep-gro, nep-his, nep-ino and nep-ore
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/96073/1/MPRA_paper_96073.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/107906/1/MPRA_paper_107906.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/110198/1/MPRA_paper_110198.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/115072/1/MPRA_paper_115072.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/118093/1/inequality.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/118746/1/MPRA_paper_118746.pdf revised version (application/pdf)

Related works:
Journal Article: Innovation and inequality from stagnation to growth (2023)
Working Paper: Innovation and Inequality from Stagnation to Growth (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:96073

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().