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Working Paper 1999-013A Search | View by Year | View by Category | View by Author | View by JEL Code"Income Inequality and Minimum Consumption: Implications for Growth"
Specifically, when a large fraction of the population is below the threshold income necessary for subsistence, aggregate consumption is depressed. In low-income countries, high inequality of income retards consumption growth, whereas in high-income countries inequality may be neutral for growth. Cross-country regressions indicate a positive and significant relationship between the middle quintile share of income and aggregate consumption. In all cases analyzed, increasing income in the middle quintile increases consumption growth. Full Text - Acrobat PDF (229k) Notify Me of Updates for:
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