TY - JOUR
T1 - Enterprise, inequality and economic development
AU - Lloyd-Ellis, Huw
AU - Bernhardt, Dan
N1 - Funding Information:
Thus, the Lorentz curves intersect at most once. If the supply and demand curves for labour are so wage elastic that (wr!Y,) > (wt-J!Y,-I), then the Lorentz curves cannot intersect at all. II Acknowledgements. This paper has benefitted from the comments of David Andolfatto, Charles Beach, Jim Bergin, V. V. Chari, Mick Devereux, Burton Hollifield, Arthur Hosios, Tom McCurdy, Aloysius Siow, Robert Townsend, Dan Usher, and seminar participants at Brock, Cornell, Minnesota, Northwestern, Pennsylvania, Queen's, Rutgers, Toronto, UBC, and Waterloo. All remaining errors and omissions are our own. Funding from the Social Sciences and Humanities Research Council of Canada is gratefully acknowledged.
PY - 2000
Y1 - 2000
N2 - We characterize an equilibrium development process driven by the interaction of the distribution of wealth with credit constraints and the distribution of entrepreneurial skills. When efficient entrepreneurs are relatively abundant, a 'traditional' development process emerges in which the evolution of macroeconomic variables accord with empirical regularities and income inequality traces out a Kuznets curve. If, instead, efficient entrepreneurs are relatively scarce, the model generates long-run 'distributional cycles' driven by the endogenous interaction between credit constraints, entrepreneurial efficiency and equilibrium wages.
AB - We characterize an equilibrium development process driven by the interaction of the distribution of wealth with credit constraints and the distribution of entrepreneurial skills. When efficient entrepreneurs are relatively abundant, a 'traditional' development process emerges in which the evolution of macroeconomic variables accord with empirical regularities and income inequality traces out a Kuznets curve. If, instead, efficient entrepreneurs are relatively scarce, the model generates long-run 'distributional cycles' driven by the endogenous interaction between credit constraints, entrepreneurial efficiency and equilibrium wages.
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U2 - 10.1111/1467-937X.00125
DO - 10.1111/1467-937X.00125
M3 - Article
AN - SCOPUS:0034537623
SN - 0034-6527
VL - 67
SP - 147
EP - 168
JO - Review of Economic Studies
JF - Review of Economic Studies
IS - 1
ER -