The Inequality and Growth Nexus: The Role of Institutions in Mitigating the Negative Effects of Income Inequality
The link between income inequality and economic growth has been a popular topic in the empirical research literature in the past decades. Despite that, a consensus is yet to emerge. This paper analyzes the effect of income inequality on economic growth and the role of institutions in mitigating potentially negative effects using a panel of 48 countries in the time-period 1977-2009, including a mix