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Cited by 659

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Income Inequality is not Harmful for Growth: Theory and Evidence

Open access
Li, Hongyi, Zou, Heng‐fu·1998·Review of Development Economics

Abstract

The paper shows that income inequality may theoretically lead to higher economic growth if public consumption enters the utility function. Empirically, baseline estimations and a sensitivity analysis show that income inequality is positively, and most of the time significantly, associated with economic growth. These findings stand in sharp contrast to the negative association between inequality and growth propounded by Alesina and Rodrik and by Persson and Tabellini.

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Metadata

Authors
Li, H., & Zou, H.
Venue
Review of Development Economics
Publisher
Wiley
Published
1998-10
Volume
2
Issue
3
Pages
318-334
ISSN
  • 1363-6669 (ISSN-L)
  • 1467-9361
OpenAlex
W2070885761
Cited by
659
References
0
FWCI
33.03
Type
journal article
Language
en
Open access
green

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CoChat. (2026). Citation check: Income Inequality is not Harmful for Growth: Theory and Evidence. https://app.cochat.ai/papers/10.1111/1467-9361.00045
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Li, H., & Zou, H. (1998). Income Inequality is not Harmful for Growth: Theory and Evidence. Review of Development Economics. https://doi.org/10.1111/1467-9361.00045

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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.

Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.