The paper Inequality and Economic Growth in the UK written by Yang Xiaoliang (a young professor at the School of Public Finance and Taxation & IIDPF), and his co-authors has been published in the SSCI journal Open Economies Review.
The paper analyses the impact of wealth inequality on economic growth in the UK in the decades since the Thatcher government. The authors established a heterogeneous-agent growth model, where agents can enhance individual productivity growth by undertaking entrepreneurship. Indirect Inference is applied to the structural estimation and structural testing of the model. The model is estimated and tested by Indirect Inference and is not rejected, indicating policy-makers facing a trade-off between redistribution and growth.
Dr Xiaoliang Yang graduated from Cardiff University and joined ZUEL in 2019. His research interests include macroeconomic modelling, applied macroeconometrics, numerical simulation modeling and his research interests include the areas of economic growth, inequality and redistribution.