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Response to Edwards and McGuirk: Income Level, Economic Growth, and Inequality: Flawed Methodology and Inaccurate Inference

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  • Jih Y. Chang
  • Rati Ram

Abstract

THE COMMENT BY EDWARDS AND MCGUIRK (2004) HAS numerous significant flaws. These include: (1) an incomplete understanding of the paper by Chang and Ram (2000), (2) lack of familiarity with development data sets and the vast literature on cross-country studies of inequality and growth, and (3) an inadequate grasp of the basics of econometric model specification and the elementary principles of generating predicted values from regression estimates. We first briefly note a few aspects that might not be considered major, and then explain the fatal flaw that renders its main conclusion inaccurate.

Suggested Citation

  • Jih Y. Chang & Rati Ram, 2004. "Response to Edwards and McGuirk: Income Level, Economic Growth, and Inequality: Flawed Methodology and Inaccurate Inference," Econ Journal Watch, Econ Journal Watch, vol. 1(2), pages 235-243, August.
    • Handle: RePEc:ejw:journl:v:1:y:2004:i:2:p:235-243
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    1. Jeffrey Edwards & Anya McGuirk, 2004. "Kuznets Curveball: Missing the Regional Strike Zone," Econ Journal Watch, Econ Journal Watch, vol. 1(2), pages 222-234, August.
    2. Chang, Jih Y & Ram, Rati, 2000. "Level of Development, Rate of Economic Growth, and Income Inequality," Economic Development and Cultural Change, University of Chicago Press, vol. 48(4), pages 787-799, July.
    3. Adelman, Irma & Robinson, Sherman, 1989. "Income distribution and development," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 2, chapter 19, pages 949-1003, Elsevier.
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    1. Jeffrey Edwards & Anya McGuirk, 2004. "Reply to Chang and Ram: Statistical Adequacy and the Reliability of Inference," Econ Journal Watch, Econ Journal Watch, vol. 1(2), pages 244-259, August.
    2. Jih Y. Chang & Rati Ram, 2004. "Rate of Economic Growth, Level of Development, and Income Inequality: Rejoinder to the Reply by Edwards and McGuirk," Econ Journal Watch, Econ Journal Watch, vol. 1(3), pages 465-472, December.

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