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- W2161094862 abstract "This paper contributes to the debate over the relationship between inequality and inclusive growth by testing the proposition of a kinked-non linear relationship between income inequality and economic growth in a country specic context. The proposition is rst conrmed with a wide panel dataset of 138 countries, using the Kuznets hypothesis as a vehicle of validation. Then, the non linearity is contrasted for the Mexican economy using a highly disaggregated dataset at the municipal level. An inverted U shaped relationship is demonstrated, showing that low levels of inequality exert a positive correlation with economic growth, while high levels have a negative one. Additionally, and more importantly, it is demonstrated the existence of an optimal rate of inequality (ORI) that maximizes growth rates and releases the economy from any distortion generated by elevated inequality or taxation. It is conrmed that inequality does matter for growth, governments that wish to promote economic growth should incorporate redistributive policies not only as a part of the social agenda but as an important element of the growth strategy." @default.
- W2161094862 created "2016-06-24" @default.
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- W2161094862 date "2014-05-01" @default.
- W2161094862 modified "2023-09-27" @default.
- W2161094862 title "Inequality and growth in the context of the Mexican economy: Does inequality matter for growth?" @default.
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