Trickle down effect more an ideological leap of faith than an economic reality

Core Economics has posted a link to a recent paper on inequality and growth; Do Rising Top Incomes Lift All Boats?

This thoughtful research eventually leads to conclusions that the poor intuitively know well - that any claims that economic growth which benefits the haves will always flow though to a similar benefit for the have nots is not supported by available data.

There appears to be some trickle-down effect in the long run, but since the impact of a change in inequality on economic growth is quite small, it is difficult to be sure from our estimates whether the bottom 90 per cent will really be better off or not.

Core Economics continues to prove that it is a blog well worth visiting.