%0 Report
        %A Henderson, Daniel J.
%A Qian, Junhui
%A Wang, Le
        %T The Inequality-Growth Plateau
        %D 2015
        %8 2015 Jan
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 8771
        %U https://www.iza.org/index.php/publications/dp8771
        %X We examine the (potentially nonlinear) relationship between inequality and growth using a method which does not require an a priori assumption on the underlying functional form. This approach reveals a plateau completely missed by commonly used (nonlinear) parametric approaches - the economy first expands rapidly with a large decline in inequality, plateaus when inequality remains relatively stable, and then decreases rapidly with a large increase in inequality. This novel finding helps reconcile the conflicting results in the literature (using different parametric assumptions and datasets) and has important policy implications.
        %K inequality
%K growth
%K panel data
%K semiparametric