Does wealth inequality matter for growth? The effect of billionaire wealth, income distribution, and poverty

0455388 - NHU-C 2016 RIV US eng J - Článek v odborném periodiku
Bagchi, S. - Švejnar, Jan
Does wealth inequality matter for growth? The effect of billionaire wealth, income distribution, and poverty.
Journal of Comparative Economics. Roč. 43, č. 3 (2015), s. 505-530. ISSN 0147-5967. E-ISSN 1095-7227
Institucionální podpora: PRVOUK-P23
Klíčová slova: economic growth * wealth inequality * income inequality
Kód oboru RIV: AH - Ekonomie
Impakt faktor: 1.380, rok: 2015

A fundamental question in social sciences relates to the effect of wealth inequality on economic growth. Yet, in tackling the question, researchers have had to use income as a proxy for wealth. We derive a global measure of wealth inequality from Forbes magazine’s listing of billionaires and compare its effect on growth to the effects of income inequality and poverty. Our results suggest that wealth inequality has a negative relationship with economic growth, but when we control for the fact that some billionaires acquired wealth through political connections, the relationship between politically connected wealth inequality and economic growth is negative, while politically unconnected wealth inequality, income inequality, and initial poverty have no significant relationship.
Trvalý link: http://hdl.handle.net/11104/0256006