Scandinavian Working Papers in Economics

Working Paper Series,
Research Institute of Industrial Economics

No 505: How Can Economic Policy Strike a Balance between Economic Efficiency and Income Equality?

Assar Lindbeck ()
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Assar Lindbeck: Research Institute of Industrial Economics (IFN)

Abstract: Can income equality be combined with high economic efficiency and rapid economic growth? Fortunately, we need not to answer such a general question. Indeed, the question is poorly phrased. The relationship between income and wealth distribution, on one hand, and efficiency/growth, on the other, depends on how a certain distribution of income and wealth has come about.

Keywords: Income; Economic growth; Wealth

JEL-codes: E20; E25; O47

39 pages, September 25, 1998

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