Abstract. What is the relationship between income inequality and aggregate growth? Through an ingenious decomposition, Lippi and Perri cast this relationship as a function of simple moments of the distribution of changes in household income. Their study delivers new evidence linking heterogeneous micro-level income changes to macro-level growth outcomes. Faster income growth among rich households has mitigated the slowdown of aggregate growth in the US, especially after 20 0 0. These findings bring forth questions about the origins of unequal growth and its impact on the welfare of different subsets of the population.
Citation
@article{gallipoli2023comments,
title={Comments on unequal growth},
author={Gallipoli, Giovanni},
journal={Journal of Monetary Economics},
volume={133},
pages={19--24},
year={2023},
publisher={Elsevier}
}