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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
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    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.

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    File URL: http://econjwatch.org/file_download/278/ejw_com_aug04_changram.pdf
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    Bibliographic Info

    Article provided by Econ Journal Watch in its journal Econ Journal Watch.

    Volume (Year): 1 (2004)
    Issue (Month): 2 (August)
    Pages: 235-243

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    Handle: RePEc:ejw:journl:v:1:y:2004:i:2:p:235-243

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    Cited by:
    1. 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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