A Reassessment of the Relationship Between Inequality and Growth
نویسنده
چکیده
This paper challenges the current belief that income inequality has a negative relationship with economic growth. It uses an improved data set on income inequality which not only reduces measurement error, but also allows estimation via a panel technique. Panel estimation makes it possible to control for time-invariant country-specific effects, therefore eliminating a potential source of omitted-variable bias. Results suggest that in the short and medium term, an increase in a country’s level of income inequality has a significant positive relationship with subsequent economic growth. This relationship is highly robust across samples, variable definitions, and model specifications. (JEL O40, O15, E25)
منابع مشابه
The Interaction between Income Inequality and Inclusive Growth in Iranian Provinces (SURE Approach in Panel Data)
Abstract: The concept of inclusive growth is one of the important issues in the urban economics literature and has been considered in empirical studies recently. For this purpose, the main aim of this paper is to investigate the relationship between income inequality and GDP growth in Iranian provinces over the period of 2000-2012. To conduct this study, the econometric model has been est...
متن کاملReassessment of Underlying Factors of Juvenile Delinquency in the Purview of COVID-19: A Case Study
This paper is a reassessment of underlying factors of juvenile delinquency in the purview of Covid-19. The study tries to judge the relationship between juvenile delinquency and impact of media, heredity, environment, time, age, school performance, economic status, association etc. The significance of the relationships has been tested. Moreover, attempt has been made to study the influence of t...
متن کاملOpportunity Inequality and its Effects on Economic Growth and Per Capita GDP
Opportunity inequality and its relationship with economic growth is a concept to which not enough attention has been paid in the previous studies. This study attempts to investigate the effects of opportunity inequality index on economic growth in 15 developing and 15 developed countries over the years 1995-2015. Accordingly, the mean group (MG) estimator within the framework of panel data was ...
متن کاملOpenness of Trade, Unemployment and Inequality of Income Distribution: Comparison between Developed and Developing Countries
In the discussions of trading, unemployment and income distribution inequality, this question is raised by economists that in economic development of developing and developed countries, which policy is necessary in the first stage. Is trading liberalization the pre-requirement of transfer from a close economy to a relative open economy and is it necessary for the developed economy compared to o...
متن کاملInvestigating the Factors Affecting Income Inequality in Iran with Emphasis on Financial Depth and Education
The main purpose of this article is to investigate the factors affecting Iranchr('39')s income inequality in the period 1352 to 1396. For this purpose, causal relationships were first investigated using Hsiao and Toda-Yamamato causality tests. Then the effects of effective factors were estimated using error correction patterns.The results of causal tests in general showed that there is a causal...
متن کامل