Acta Oeconomica Pragensia 2011, 19(4):3-24 | DOI: 10.18267/j.aop.337

Relations Between Unequal Income Distribution, Economic Growth and Income Poverty. Latest Findings in Current Economics

Erika Ľapinová
Univerzita Mateja Bela v Banskej Bystrici, Inštitút ekonomických vied Ekonomickej fakulty (erika.lapinova@umb.sk).

In this paper we systematize existing theoretical and empirical, often contradictory, knowledge of leading international economists and foreign institutions about reciprocal and causal relations between income distribution, economic growth and income poverty, in order to highlight the importance of income distribution in the economic system, the causes and consequences of income distribution at the macroeconomic and microeconomic levels, which knowledge is relevant for both current economic theory and economic policy.
In this paper we seek to answer questions such as: Why is it important to be interested in income inequality? How to relate income inequality and economic growth? Does economic growth affect income inequality or can income inequality increase or decrease the rate of growth? Is the initial level of property or income important for macroeconomic performance and macroeconomic growth? How can the initial level of wealth and income inequality influence the effects of economic growth on poverty reduction? Is there an effective state policy to reduce or eliminate income poverty? Can a government reduce poverty only by promoting economic growth, or is it desirable to choose a combination of growth-redistribution policies?

Keywords: income inequality, income distribution, economic growth, income poverty
JEL classification: D31, F43

Published: August 1, 2011  Show citation

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Ľapinová, E. (2011). Relations Between Unequal Income Distribution, Economic Growth and Income Poverty. Latest Findings in Current Economics. Acta Oeconomica Pragensia, 19(4), 3-24. doi: 10.18267/j.aop.337
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