Journal Article

Enterprise, Inequality and Economic Development

Huw Lloyd-Ellis and Dan Bernhardt

in The Review of Economic Studies

Published on behalf of Review of Economic Studies Ltd

Volume 67, issue 1, pages 147-168
Published in print January 2000 | ISSN: 0034-6527
Published online January 2000 | e-ISSN: 1467-937X | DOI: http://dx.doi.org/10.1111/1467-937X.00125
Enterprise, Inequality and Economic Development

Show Summary Details

Preview

We characterize an equilibrium development process driven by the interaction of the distribution of wealth with credit constraints and the distribution of entrepreneurial skills. When efficient entrepreneurs are relatively abundant, a “traditional” development process emerges in which the evolution of macroeconomic variables accord with empirical regularities and income inequality traces out a Kuznets curve. If, instead, efficient entrepreneurs are relatively scarce, the model generates long-run “distributional cycles” driven by the endogenous interaction between credit constraints, entrepreneurial efficiency and equilibrium wages.

Journal Article.  0 words. 

Subjects: Economics

Full text: subscription required

How to subscribe Recommend to my Librarian

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.