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Growth-Inequality Relationship. An Analytical Approach and Some Evidence for Latin America

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  • Alvargonzalez, M.
  • Lopez, A.
  • Perez, R.

Abstract

The explanation of economic inequality and its relationship to growth has produced a great amount of research. Kuznets (1955) formulated the “inverted-U” hypothesis according to which inequality increases in the initial levels of development to decrease later on, after a certain point of return. This proposition has been the subject of great attention with many theoretical and empirical contributions. In this paper we present an analytical approach to the growth-inequality relationship, including not only the most common measures, but also new indicators based on the information theory.The work also includes the estimation of the growth-inequality relationship and the contrast of the Kuznets´ hypothesis within Latin America.

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Bibliographic Info

Article provided by Euro-American Association of Economic Development in its journal Applied Econometrics and International Development.

Volume (Year): 4 (2004)
Issue (Month): 2 ()
Pages:

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Handle: RePEc:eaa:aeinde:v:4:y:2004:i:1_14

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  1. Park, Walter G & Brat, David A, 1995. "A Global Kuznets Curve?," Kyklos, Wiley Blackwell, vol. 48(1), pages 105-31.
  2. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-20, July.
  3. Robinson, Sherman, 1976. "A Note on the U Hypothesis Relating Income Inequality and Economic Development," American Economic Review, American Economic Association, vol. 66(3), pages 437-40, June.
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  6. Dollar, David & Kraay, Aart, 2001. "Growth is good for the poor," Policy Research Working Paper Series 2587, The World Bank.
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  8. Weisskoff, Richard, 1970. "Income Distribution and Economic Growth in Puerto Rico, Argentina, and Mexico," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 16(4), pages 303-32, December.
  9. Shengxiu Zhu & Les Oxley, 2001. "Testing models of growth - a two-sector model of the USA," Applied Economics Letters, Taylor & Francis Journals, vol. 8(5), pages 325-329.
  10. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-25, April.
  11. Ram, Rati, 1989. "Level of Development and Income Inequality: An Extension of Kuznets-Hypothesis to the World Economy," Kyklos, Wiley Blackwell, vol. 42(1), pages 73-88.
  12. John Thornton, 2001. "The Kuznets inverted-U hypothesis: panel data evidence from 96 countries," Applied Economics Letters, Taylor & Francis Journals, vol. 8(1), pages 15-16.
  13. Savvides, A. & Stengos, T., 2000. "Income Inequality and Economic Development: Evidence from the Threshold Regression Model," Working Papers 2000-2, University of Guelph, Department of Economics and Finance.
  14. P. J. Dawson, 1997. "On testing Kuznets' economic growth hypothesis," Applied Economics Letters, Taylor & Francis Journals, vol. 4(7), pages 409-410.
  15. Tomson Ogwang, 2000. "Inter-country inequality in human development indicators," Applied Economics Letters, Taylor & Francis Journals, vol. 7(7), pages 443-446.
  16. V. V. Bhanoji Rao & Shandre Mugan Thangavelu, 2000. "Do poor countries tend to grow faster than rich countries?," Applied Economics Letters, Taylor & Francis Journals, vol. 7(10), pages 629-632.
  17. Savvides, A. & Stengos, T., 2000. "Income Inequality and Economic Development: Evidence from the Threshold Regression Model," Working Papers 2000-2, University of Guelph, Department of Economics and Finance.
  18. Sylwester, Kevin, 2000. "Income inequality, education expenditures, and growth," Journal of Development Economics, Elsevier, vol. 63(2), pages 379-398, December.
  19. Deininger, Klaus & Squire, Lyn, 1998. "New ways of looking at old issues: inequality and growth," Journal of Development Economics, Elsevier, vol. 57(2), pages 259-287.
  20. Ahluwalia, Montek S, 1976. "Income Distribution and Development: Some Stylized Facts," American Economic Review, American Economic Association, vol. 66(2), pages 128-35, May.
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