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Economic growth, inequality and efficiency

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  • Sona Stikarova

    (University of Economics in Bratislava, Faculty of National Economy, Department of Economic Policy)

Abstract

Over the last decades, theoretical work has come up with a significant amount of concepts how the income inequality and economic growth may affect each other. The recent literature identifies many channels through inequality may have positive, negative or even both effects on economic performance, but in different time dimensions. The relationship has been researched from the both perspective: the impact of income inequality on economic growth, and how the economic growth and efficiency are related to income inequality. Despite of the amount of theoretical and empirical work, the relationship between efficiency and equality is far from being well understood.

Suggested Citation

  • Sona Stikarova, 2014. "Economic growth, inequality and efficiency," Department of Economic Policy Working Paper Series 006, Department of Economic Policy, Faculty of National Economy, University of Economics in Bratislava.
    • Handle: RePEc:brt:depwps:006
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    More about this item

    Keywords

    income inequality; efficiency; growth;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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