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Income inequality and economic development: evidence from the threshold regression model

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  • Savvides, Andreas
  • Stengos, Thanasis

Abstract

Using panel data we investigate the relationship between income inequality and economic development. We employ a threshold regression model that allows for endogenous income thresholds and find strong evidence of a two-regime split in our sample.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 69 (2000)
Issue (Month): 2 (November)
Pages: 207-212

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Handle: RePEc:eee:ecolet:v:69:y:2000:i:2:p:207-212

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References

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  1. Eusufzai, Zaki, 1997. "The Kuznets hypothesis: An indirect test," Economics Letters, Elsevier, vol. 54(1), pages 81-85, January.
  2. 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.
  3. Anand, Sudhir & Kanbur, S. M. R., 1993. "The Kuznets process and the inequality--development relationship," Journal of Development Economics, Elsevier, vol. 40(1), pages 25-52, February.
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Citations

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Cited by:
  1. Yu, Ping, 2012. "Likelihood estimation and inference in threshold regression," Journal of Econometrics, Elsevier, vol. 167(1), pages 274-294.
  2. García Gámez, Sofía & Vicéns Otero, José, 2006. "Determining factors in the measurement of the sovereign risk in the emerging countries/Factores condicionantes en la medición del riesgo soberano en los países emergentes," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 24, pages 245-272, Abril.
  3. Guastella, G. & Moro, D. & Sckokai, P. & Veneziani, M., 2013. "CAP Effects on Agricultural Investment Demand in Europe," Proceedings Issues, 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152256, International Agricultural Trade Research Consortium.
  4. repec:hal:journl:halshs-00180955 is not listed on IDEAS
  5. Been-Lon Chen & Jang-Ting Guo, 2005. "Income Inequality and Economic Growth: A Simple Theoretical Synthesis," Annals of Economics and Finance, Society for AEF, vol. 6(2), pages 319-329, November.
  6. Guastella,Giovanni & Moro, Daniele & Sckokai, Paolo & Veneziani, Mario, 2013. "Investment behaviour of EU arable crop farms in selected EU countries and the impact of policy reforms," Factor Markets Working Papers 154, Centre for European Policy Studies.
  7. Reuter & Ulrich, 2004. "The Effects of Intraregional Disparities on Regional Development in China: Inequality Decomposition and Panel-Data Analysis," Econometric Society 2004 Far Eastern Meetings 716, Econometric Society.
  8. Partha Gangopadhyay & Biswa N. Bhattacharyay, 2012. "Can there be a Wave-Like Association between Economic Growth and Inequality? Theory and Lessons for East Asia from the Middle East," CESifo Working Paper Series 3953, CESifo Group Munich.
  9. Alvargonzalez, M. & Lopez, A. & Perez, R., 2004. "Growth-Inequality Relationship. An Analytical Approach and Some Evidence for Latin America," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 4(2).
  10. David Castells & Vicente Royuela, 2011. "Agglomeration, Inequality and Economic Growth," IREA Working Papers 201114, University of Barcelona, Research Institute of Applied Economics, revised Apr 2012.
  11. Heshmati, Almas, 2004. "Growth, Inequality and Poverty Relationships," IZA Discussion Papers 1338, Institute for the Study of Labor (IZA).
  12. Ayal Kimhi, 2004. "Growth, Inequality and Labor Markets in LDCs: A Survey," CESifo Working Paper Series 1281, CESifo Group Munich.
  13. Robert-Paul Berben, 2003. "Does stock market uncertainty impair the use of monetary indicators in the euro area?," MEB Series (discontinued) 2003-15, Netherlands Central Bank, Monetary and Economic Policy Department.
  14. David Castells & Vicente Royuela, 2012. "Agglomeration, Inequality and Economic Growth: Cross-section and panel data analysis," ERSA conference papers ersa12p492, European Regional Science Association.
  15. Chen, Zhuo, 2007. "Development and inequality: Evidence from an endogenous switching regression without regime separation," Economics Letters, Elsevier, vol. 96(2), pages 269-274, August.

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