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| Article Name : | | | INEQUALITYAND GROWTH: CONSUMPTION AND INVESTMENT EFFECT | | Author Name : | | | Krittika Tiwari , Sarvesh Bandhu | | Publisher : | | | Ashok Yakkaldevi | | Article Series No. : | | | GRT-3951 | | Article URL : | |  | Author Profile View PDF In browser | | Abstract : | | | The real world experiences show that there are cases where development is happen due to social and economic equality among the individuals of an economy. So that with income equality an economy can grow at higher pace than with income inequality. For example, the case studies of eight East-Asian tigers show that the equality (socially & economically) benefits the country in the development process. We want to demonstrate that inequality in income can hamper the growth of an economy by affecting the potential level of consumption and investment. To analyze the argument, let wehave a closed economy macro model with inequality. We have shown that inequality leads affects economic growth adversely. | | Keywords : | | |
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