Föllmi, RetoRetoFöllmi2023-04-132023-04-132011https://www.alexandria.unisg.ch/handle/20.500.14171/94992Within the context of the neoclassical growth model I investigate the implications of (initial) endowment inequality when the rich have a higher marginal savings rate than the poor. More unequal societies grow faster in the transition process, and therefore exhibit a higher speed of convergence. Furthermore, there is divergence in consumption and lifetime wealth if the rich exhibit a higher intertemporal elasticity of substitution.enworking paper