Income Distribution and Demand-Induced Innovations
在创新驱动增长模型中引入非位似偏好，研究收入与财富不平等如何通过价格效应和市场大小效应影响经济增长，发现价格效应占主导，且适度再分配可能实现帕累托改进。
We introduce non-homothetic preferences into an innovation-based growth model and study how income and wealth inequality affect economic growth. We identify a (positive) price effect-where increasing inequality allows innovators to charge higher prices and (negative) market-size effects-with higher inequality implying smaller markets for new goods and/or a slower transition of new goods into mass markets. It turns out that price effects dominate market-size effects. We also show that a redistribution from the poor to the rich may be Pareto improving for low levels of inequality. Copyright 2006, Wiley-Blackwell.