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• Christian Bjornskov

economic growth. By using the political ideology of governments as a measure of

revealed tolerance of inequality, the paper shows that controlling for ideology improves

the accuracy with which the effects of inequality are measured. Results show that

inequality reduces growth but more so in societies where people perceive it as being

relatively unfair. Further results indicate that legal quality and social trust are likely

transmission channels for the effects of inequality.

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Paper provided by University of Aarhus, Aarhus School of Business, Department of Economics in its series Working Papers with number 04-8.

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Length: 34 pages
Date of creation: 27 May 2004
Date of revision:
Handle: RePEc:hhs:aareco:2004_008

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Related research

Keywords: Inequality; Growth; Social Capital and Social Norms;

Find related papers by JEL classification:
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
Z13 - Other Special Topics - - Cultural Economics - - - Social Norms and Social Capital; Social Networks Economic Anthropology

This paper has been announced in the following NEP Reports:

• NEP-ALL-2004-06-02 (All new papers)
• NEP-DEV-2004-06-02 (Development)

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This page was last updated on 2009-11-22.