CHRISTL, MICHAEL, De Poli S. , Köppl-Turyna M.

No

Econ. Model.

Article

Científica

✓

✓

https://www.scopus.com/inward/record.uri?eid=2-s2.0-105003748513&doi=10.1016%2fj.econmod.2025.107104&partnerID=40&md5=cacbcb2a7ec8a9eaa17e5ce4d13d768d

01/01/2025

001494517600001

2-s2.0-105003748513

10.1016/j.econmod.2025.107104

This paper examines the impact of inequality and redistribution on economic growth in the EU. While past research finds inequality harms long-term growth, the effects of redistribution remain debated. Using panel data from 25 EU countries (2007–2019), we introduce the Net Benefit Share as a measure for targeted redistribution. Our findings show that market inequality boosts short-term growth, but redistribution targeted to low-income households further enhances it mainly via the consumption channel. In contrast, redistribution to high-income earners and pensioners reduces growth. These results highlight the importance of well-targeted redistributive policies for economic performance. © 2025

European union; Growth; Inequality; Redistribution

• MICHAEL CHRISTL