Inequality: A hidden cost of market power
Ennis, Sean, Gonzaga, Pedro and Pike, Chris (2019) Inequality: A hidden cost of market power. Oxford Review of Economic Policy, 35 (3). pp. 518-549. ISSN 0266-903X
![]() |
PDF (Accepted_Manuscript)
- Submitted Version
Restricted to Repository staff only until 11 July 2021. Download (1MB) | Request a copy |
Abstract
This paper explores the impact of competition on inequality by developing a new model to illustrate how higher profits from market power, and associated higher prices, could influence the distribution of wealth and income. We analyse data from eight OECD countries—Canada, France, Germany, Korea, Japan, Spain, the United Kingdom, and the United States. In an average country in the sample, market power increases the wealth of the richest 10 per cent by between 12 and 21 per cent for a range of reasonable assumptions about savings behaviour, while it reduces the income of the poorest 20 per cent by 11 per cent or more. The results contribute to the economic literature on the origins of inequality, suggesting that lack of competition may be one source of economic inequality.
Item Type: | Article |
---|---|
Uncontrolled Keywords: | inequality,income distribution,wealth distribution,market power,competition |
Faculty \ School: | Faculty of Social Sciences > Norwich Business School |
Depositing User: | LivePure Connector |
Date Deposited: | 17 Jul 2019 08:30 |
Last Modified: | 20 Aug 2020 23:57 |
URI: | https://ueaeprints.uea.ac.uk/id/eprint/71759 |
DOI: | 10.1093/oxrep/grz017 |
Actions (login required)
![]() |
View Item |