Inequality amongst the wealthiest and its link with economic growth
In this paper we correlate the key features of the distribution of wealth of the 500 wealthiest individuals in the Netherlands with economic growth and stock market returns for 1998 to 2009. We show that each year the distribution obeys a power law and that the key parameter measures the degree of inequality. Our main finding is that more inequality amongst the wealthiest is associated with higher economic growth.
|Keywords||economic growth, power law, wealth distribution|
|Publisher||Erasmus School of Economics (ESE)|
|Series||Econometric Institute Research Papers|
|Journal||Report / Econometric Institute, Erasmus University Rotterdam|
Franses, Ph.H.B.F, & Vermeer, S. (2010). Inequality amongst the wealthiest and its link with economic growth (No. EI 2010-27). Report / Econometric Institute, Erasmus University Rotterdam (pp. 1–31). Erasmus School of Economics (ESE). Retrieved from http://hdl.handle.net/1765/19360