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Econometrics of Income Distribution: Toward More Comprehensive Specification of Institutional Correlates

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  • J Benson Durham

Abstract

Econometric studies of income distribution that include institutional determinants suffer from specification bias—economists do not consider a more complete ensemble of factors that possibly influence equality. While there is no “true” specification, panel and time-series regressions indicate a comparatively robust positive relationship between fiscal federalism and equitable income distribution. Surprisingly, no compelling evidence suggests any correlation with regime-type, labor organization or “Left” government partisanship. Also, among common economic determinants, these results contradict Kuznet's thesis and the hypothesis regarding population growth. Less consistent evidence confirms enduring views regarding government spending and openness to international trade.

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  • J Benson Durham, 1999. "Econometrics of Income Distribution: Toward More Comprehensive Specification of Institutional Correlates," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 41(1), pages 43-74, April.
    • Handle: RePEc:pal:compes:v:41:y:1999:i:1:p:43-74
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    Citations

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    Cited by:

    1. Anneli Kaasa, 2003. "Factors Influencing Income Inequality In Transition Economies," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 18, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    2. Parboteeah, K. Praveen & Cullen, John B. & Lim, Lrong, 2004. "Formal volunteering: a cross-national test," Journal of World Business, Elsevier, vol. 39(4), pages 431-441, November.
    3. Anneli Kaasa, 2005. "Factors Of Income Inequality And Their Influence Mechanisms: A Theoretical Overview," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 40, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    4. Jülide Yildirim & Nadir Öcal & Süheyla Özyildirim, 2009. "Income Inequality and Economic Convergence in Turkey: A Spatial Effect Analysis," International Regional Science Review, , vol. 32(2), pages 221-254, April.
    5. Sara ROSE & Crina VIJU, 2014. "Income inequality in post-communist Central and Eastern European countries," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 5, pages 5-20, June.
    6. Bojanic, Antonio N., 2018. "The impact of fiscal decentralization on growth, inflation and inequality in the Americas," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    7. Sharimakin A. & Oseni M.S. & Adegboye A.C., 2015. "Education, labour productivity and income inequality in Nigeria," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 15(1), pages 295-306.

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