Schumpeterian Entrepreneurs Meet Engel's Law: The Impact of Inequality on Innovation-Driven Growth

Josef Zweimueller
Authors registered in the RePEc Author Service: Josef Zweimüller

No 9, IEW - Working Papers from Institute for Empirical Research in Economics - University of Zurich

Abstract: This paper analyzes the impact of inequality on growth when technical progress is driven by innovations and consumers have hierarchic preferences. Inequality has an impact on growth because it affects the structure and the dynamics of demand. Redistribution from very rich to very poor consumers is beneficial for growth. In general, the growth effect depends on the nature of redistribution. Due to a demand externality of R&D activites multiple equilibria are possible.

Keywords: innovation; growth; inequality; hierarchic demand; multiple equilibri (search for similar items in EconPapers)
JEL-codes: H23 O14 O15 O31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev, nep-ino and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Related works:
Journal Article: Schumpeterian Entrepreneurs Meet Engel's Law: The Impact of Inequality on Innovation-Driven Growth (2000)
Working Paper: Schumpeterian Entrepreneurs Meet Engel's Law: The Impact of Inequality on Innovation-Driven Growth (1998)
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Persistent link: https://EconPapers.repec.org/RePEc:zur:iewwpx:009

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