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The Major Obstacle to Economic Growth for EU Countries: Unequal Income Distribution

Author

Listed:
  • Deniz ZUNGUN

    (Manisa Celal Bayar University, Turkey)

  • Emine Turkan AYVAZ GUVEN

    (Manisa Celal Bayar University, Turkey)

  • Florina Oana VIRLANUTA

    (Dunarea de Jos University of Galati, Romania)

  • Ozge ONKAN

    (Manisa Celal Bayar University, Turkey)

Abstract

Price stability contributes to financial stability because it eliminates the market distortions and uncertainties which may occur at the markets’ level as a result of the price instability. Price stability can reduce the level of risk premiums in interest rates because it lowers the degree of uncertainty that is associated with future inflation.

Suggested Citation

  • Deniz ZUNGUN & Emine Turkan AYVAZ GUVEN & Florina Oana VIRLANUTA & Ozge ONKAN, 2015. "The Major Obstacle to Economic Growth for EU Countries: Unequal Income Distribution," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 42-51.
    • Handle: RePEc:ddj:fseeai:y:2015:i:2:p:42-51
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    References listed on IDEAS

    as
    1. Alesina, Alberto & Perotti, Roberto, 1996. "Income distribution, political instability, and investment," European Economic Review, Elsevier, vol. 40(6), pages 1203-1228, June.
    2. Alberto Alesina & Dani Rodrik, 1994. "Distributive Politics and Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(2), pages 465-490.
    3. repec:ilo:ilowps:457730 is not listed on IDEAS
    4. Robinson, Sherman, 1976. "A Note on the U Hypothesis Relating Income Inequality and Economic Development," American Economic Review, American Economic Association, vol. 66(3), pages 437-440, June.
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    8. Albert O. Hirschman & Michael Rothschild, 1973. "The Changing Tolerance for Income Inequality in the Course of Economic DevelopmentWith A Mathematical Appendix," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(4), pages 544-566.
    9. J. Barkley Rosser Jr & Marina V. Rosser & Ehsan Ahmed, 2003. "Multiple unofficial economy equilibria and income distribution dynamics in systemic transition," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 25(3), pages 425-447.
    10. Dierk Herzer & Sebastian Vollmer, 2012. "Inequality and growth: evidence from panel cointegration," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 10(4), pages 489-503, December.
    11. Bourguignon, Francois, 1981. "Pareto Superiority of Unegalitarian Equilibria in Stiglitz' Model of Wealth Distribution with Convex Saving Function," Econometrica, Econometric Society, vol. 49(6), pages 1469-1475, November.
    12. Alesina, Alberto & Perotti, Roberto, 1994. "The Political Economy of Growth: A Critical Survey of the Recent Literature," The World Bank Economic Review, World Bank, vol. 8(3), pages 351-371, September.
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    Cited by:

    1. Vasile MAZILESCU, 2018. "Artificial Intelligence as a New Factor of Global Economic Growth," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 3, pages 124-133.
    2. Ozge Onkan, 2016. "New Leverage for Increasing Tax Revenues in Turkey: Traditional Tax Applications Supported by Electronic Tax Audits," Risk in Contemporary Economy, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, pages 423-430.

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