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Income Inequality and Economic Development: Evidence from the Threshold Regression Model

Author

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  • Savvides, A.
  • Stengos, T.

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.

Suggested Citation

  • Savvides, A. & Stengos, T., 2000. "Income Inequality and Economic Development: Evidence from the Threshold Regression Model," Working Papers 2000-2, University of Guelph, Department of Economics and Finance.
    • Handle: RePEc:gue:guelph:2000-2
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    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. Eusufzai, Zaki, 1997. "The Kuznets hypothesis: An indirect test," Economics Letters, Elsevier, vol. 54(1), pages 81-85, January.
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    More about this item

    Keywords

    ECONOMIC DEVELOPMENT ; INCOME DISTRIBUTION;

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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