Item Type |
Journal paper
|
Abstract |
We introduce non-homothetic preferences into an R&D based growth model to study how demand forces shape the impact of inequality on innovation and growth. Inequality affects the incentive to innovate via a price effect and a market size effect. When innovators have a large productivity advantage over traditional producers a higher extent of inequality tends to increase innovators’ prices and mark-ups. When this productivity gap is small, however, a redistribution from the rich to the poor increases market sizes and speeds up growth. |
Authors |
Föllmi, Reto & Zweimüller, Josef |
Journal or Publication Title |
Journal of Evolutionary Economics : JEE |
Language |
English |
Subjects |
economics |
HSG Classification |
contribution to scientific community |
HSG Profile Area |
SEPS - Economic Policy |
Refereed |
Yes |
Date |
2017 |
Publisher |
Springer |
Place of Publication |
Berlin |
Volume |
27 |
Number |
2 |
Page Range |
359-378 |
ISSN |
0936-9937 |
ISSN-Digital |
1432-1386 |
Publisher DOI |
https://doi.org/10.1007/s00191-016-0451-y |
Depositing User |
Prof. Dr. Reto Föllmi
|
Date Deposited |
23 Sep 2014 12:59 |
Last Modified |
01 Jun 2018 13:59 |
URI: |
https://www.alexandria.unisg.ch/publications/234870 |