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The Growth-Inequality Nexus without Borrowing Restrictions and Government Intervention: Some Implications from a Prototype Model

Author

Listed:
  • Isaac Ehrlich

    (Department of Economics, State University of New York at Buffalo)

  • Chi-Wa Yuen

    (School of Economics and Finance, University of Hong Kong)

Abstract

Using a prototype human capital based growth model without borrowing restrictions and government intervention, we study the dynamic evolution of aggregate output and income inequality. We show how even barebones models can yield some testable implications about the growth-inequality relation that may square nicely with the empirical reality. We also provide some useful speculations about this relation over different stages of economic development.

Suggested Citation

  • Isaac Ehrlich & Chi-Wa Yuen, 2000. "The Growth-Inequality Nexus without Borrowing Restrictions and Government Intervention: Some Implications from a Prototype Model," Annals of Economics and Finance, Society for AEF, vol. 1(2), pages 283-301, November.
    • Handle: RePEc:cuf:journl:y:2000:v:1:i:2:p:283-301
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    Citations

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    Cited by:

    1. Isaac Ehrlich & Jinyoung Kim, 2007. "The Evolution of Income and Fertility Inequalities over the Course of Economic Development: A Human Capital Perspective," Journal of Human Capital, University of Chicago Press, vol. 1(1), pages 137-174.

    More about this item

    Keywords

    Endogenous growth; Income inequality; Human capital; Family economics; Barebones model;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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