| 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 |
Is inequality harmful for Innovation and Growth? Price versus Market Size Effects
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