Gehrig, T and Régibeau, P and Rockett, K (1998) Project Evaluation and Organizational Form. Working Paper. C.E.P.R. Discussion Papers 1888.
Gehrig, T and Régibeau, P and Rockett, K (1998) Project Evaluation and Organizational Form. Working Paper. C.E.P.R. Discussion Papers 1888.
Gehrig, T and Régibeau, P and Rockett, K (1998) Project Evaluation and Organizational Form. Working Paper. C.E.P.R. Discussion Papers 1888.
Abstract
This paper analyses the impact of inequality on growth when technical progress is driven by innovations. It is assumed that consumers have hierarchic preferences. As a result inequality affects demand and therefore the incentive to innovate. Whether more inequality is harmful or beneficial for growth depends on the initial distribution. Complementarities between a technical and a pecuniary externality resulting from the innovation process may generate multiple equilibria. Redistribution may push an economy trapped in underdevelopment to a high-growth regime.
Item Type: | Monograph (Working Paper) |
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Uncontrolled Keywords: | imperfect communication; Imperfect Information; organizational form |
Subjects: | H Social Sciences > HB Economic Theory |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Economics, Department of |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 12 Jul 2012 11:59 |
Last Modified: | 16 May 2024 18:40 |
URI: | http://repository.essex.ac.uk/id/eprint/2833 |