Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/102616
Authors: 
Galor, Oded
Zeira, Joseph
Year of Publication: 
2013
Series/Report no.: 
Working Paper, Brown University, Department of Economics 2013-12
Abstract: 
This paper analyzes the role of income distribution in macroeonomic analysis. The study demonstrates that the long-run equilibrium depends on the initial distribution of income. In accordance with empirical evidence concerning the correlation between income distribution and output, an economy that is characterized by a relatively equal distribution of wealth is likely to be wealthier in the long run. The study may, therefore, provide an additional explanation for the persistent differences in per-capita output across countries. Furthermore, the paper may shed light on cross-countries differences in macroeconomic adjustment to aggregate shocks.
Subjects: 
Wealth distribution
income distribution
growth
capital market
imperfections
JEL: 
O33
I10
Document Type: 
Working Paper

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