Economic Growth and Inequality Term Paper by Top Papers

The paper discusses how economists have "long sought to understand the links between economic growth and income distribution" on macro and micro economic scales (Deininger & Squire, 1996). The paper explains that the common view amongst economists, according to Queen's University's Department of Economics Head Huw Lloyd-Ellis (2003), is that a trade-off always exists between equity and efficiency - that is, greater equality of income can only be achieved when lower productivity is in place (p. 65). The paper points out, however, that such views of the equality-growth relationship are somewhat traditional.