Title |
Does redistribution hurt growth? An empirical assessment of the redistribution–growth relationship in the European Union |
Authors |
CHRISTL, MICHAEL, De Poli S. , Köppl-Turyna M. |
External publication |
No |
Means |
Econ. Model. |
Scope |
Article |
Nature |
Científica |
JCR Quartile |
1 |
SJR Quartile |
1 |
Web |
https://www.scopus.com/inward/record.uri?eid=2-s2.0-105003748513&doi=10.1016%2fj.econmod.2025.107104&partnerID=40&md5=cacbcb2a7ec8a9eaa17e5ce4d13d768d |
Publication date |
01/01/2025 |
ISI |
001494517600001 |
Scopus Id |
2-s2.0-105003748513 |
DOI |
10.1016/j.econmod.2025.107104 |
Abstract |
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 |
Keywords |
European union; Growth; Inequality; Redistribution |
Universidad Loyola members |
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