
Full text loading...
This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.
I accept this policy
Find out more here
Brill’s MyBook program is exclusively available on BrillOnline Books and Journals. Students and scholars affiliated with an institution that has purchased a Brill E-Book on the BrillOnline platform automatically have access to the MyBook option for the title(s) acquired by the Library. Brill MyBook is a print-on-demand paperback copy which is sold at a favorably uniform low price.
In a neoclassical growth framework with a typical political-economy mechanism, this paper reexamines the relationship between the income inequality and economic growth by introducing government spending into the production function and the utility function. It demonstrates that Kuznets’ famous inverted-U shape relationship between inequality and economic growth will hold—the growth rate will be first increasing with the income inequality before the growth rate decreases with inequality.