Advanced Search
MyIDEAS: Login to save this article or follow this journal

Inequality And Economic Growth. Vicious Or Virtuous Circles?

Contents:

Author Info

  • López Menéndez, Ana Jesús
  • Cowell, Frank A.

Abstract

The relationship between income inequality and economic growth has been widely studied, leading to a controversial debate. Regarding the effect of economic growth on inequality, Kuznets’ inverted-U hypothesis (1955) suggests that inequality first rises with growth and then falls after a turning point. This model has been extended by Anand and Kanbur (1993), and its empirical applications have provided a wide variety of results, depending on the statistical information, the indicators and the estimation techniques. With regard to the effects of inequality on growth, on a theoretical basis the relationship could be of any sign and thus the initial works by Lewis (1954) and Kaldor (1956) defend the existence of positive effects while Alesina & Rodrick (1994), Persson & Tabellini (1994), and Deininger & Squire (1998) assume a negative relationship.The diversity of theoretical assumptions and empirical evidence has stimulated the debate without achieving a consensus about the existence of vicious or virtuous circles. In this context the present paper aims to provide new evidence about the growth-inequality relationship, paying attention to the income level in a double sense. First, we introduce a classification of countries according to their income levels, and second we distinguish between inequality relating to low and high incomes.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.usc.es/econo/RGE/Vol22_ex/castelan/art1c.pdf
Download Restriction: no

Bibliographic Info

Article provided by University of Santiago de Compostela. Faculty of Economics and Business. in its journal Revista Galega de Economía.

Volume (Year): 22 (2013)
Issue (Month): ex ()
Pages:

as in new window
Handle: RePEc:sdo:regaec:v:22:y:2013:i:ex_1

Contact details of provider:
Postal: Avda Xoan XXIII S/N, 15704 Santiago de Compostela
Web page: http://www.usc.es/econo/RGE/benvidag.htm
More information through EDIRC

Related research

Keywords: Economic growth / Inequality / Kuznets curve / Panel models;

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:sdo:regaec:v:22:y:2013:i:ex_1. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ana Iglesias Casal).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.