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2002•RePEc: Research Papers in EconomicsRequires access

Inflation, Growth, and Income Distribution: A Cross-Country Study

Hongyi Li, Heng‐Fu Zou

Open publisher page 65 citations

Abstract

This short paper uses a newly compiled cross-country panel data on income distribution to explore the impact of inflation on income distribution and economic growth. We have found that inflation (1) worsens income distribution; (2) increases the income share of the rich; (3) has a negative but insignificant effect on the income shares of the poor and the middle class; and (4) reduces the rate of economic growth.

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What this paper is about

This short paper uses a newly compiled cross-country panel data on income distribution to explore the impact of inflation on income distribution and economic growth. We have found that inflation (1) worsens income distribution; (2) increases the income share of the rich; (3) has a negative but insignificant effect on the income shares of the poor and the middle class; and (4) reduces the rate of economic growth.

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OpenAlex reports 65 citations for this work. Citation counts describe recorded attention and do not establish research quality.

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Available abstract

This short paper uses a newly compiled cross-country panel data on income distribution to explore the impact of inflation on income distribution and economic growth. We have found that inflation (1) worsens income distribution; (2) increases the income share of the rich; (3) has a negative but insignificant effect on the income shares of the poor and the middle class; and (4) reduces the rate of economic growth.

Key concepts: Economics, Income distribution, Inflation (cosmology), Distribution (mathematics), Comprehensive income, Personal income, Monetary economics, Labour economics

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