Is inequality harmful for growth? Comment

摘要: Endogenous growth models have reignited interest in institutional and path dependencies the economic process. One reason for endogenous is that they may explain why countries consistently grow at different rates. In this vein, it has been recently proposed greater inequality reduces future growth. An important paper literature by Torsten Persson Guido Tabellini (1994), who will be referred to as PT. PT's model shows reasonable expect a negative relationship between Moreover, their empirical evidence consistent with contention. If findings are robust other data sets, there would policy implications. For example, imply makers should not only concerned distributional implications of government policies political social reasons, but also because income distribution long-run effects on This indicates U.S. since early 1970's resulted lower subsequent However, results somewhat fragile various specifications, suggesting replicated sets over time periods (PT p. 617). With these mind, study employs from panel states further explore inequality. what follows, Section I summarizes discusses how comment extends findings. The implementation II directly examine link overall III expands analysis alternative measures policy. emphasis distinction (especially tails) influences relative well-being median voter affects IV provides some concluding discussion.