Inequality and Growth: Does Time Change Anything
AbstractThe econometric analysis of economic growth has always been subject to major flaws and shortcomings. Data scarcity and reliability, parameter heterogeneity, omitted variables bias, endogeneity problems, ... have seriously tainted estimation results. In this paper we propose an alternative framework that explicitly deals with these issues. We investigate the relation between income inequality and economic growth in a number of OECD countries in a cointegrated VAR-setting. Our results suggest that different models seem to hold for different countries. However, for most countries the imperfect markets model better describes reality than the complete markets model.
Download InfoIf 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.
Bibliographic InfoPaper provided by EconWPA in its series Development and Comp Systems with number 0402005.
Length: 31 pages
Date of creation: 16 Feb 2004
Date of revision:
Note: Type of Document - pdf; prepared on Win2000; pages: 31; figures: Figures in document
Contact details of provider:
Web page: http://126.96.36.199
income inequality; economic growth; cointegrated VAR;
Other versions of this item:
- N. Gobbin & G. Rayp, 2004. "Inequality and Growth: Does Time Change Anything?," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 04/230, Ghent University, Faculty of Economics and Business Administration.
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-02-23 (All new papers)
- NEP-DEV-2004-02-23 (Development)
- NEP-MAC-2004-02-23 (Macroeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Anthony B. Atkinson & Andrea Brandolini, 2000.
"Promise and Pitfalls in the Use of 'Secondary' Data-Sets: Income Inequality in OECD Countries,"
Temi di discussione (Economic working papers)
379, Bank of Italy, Economic Research and International Relations Area.
- Atkinson, A.B. & Brandolini, A., 2000. "Promise and Pitfalls in the Use of 'Secondary' Data -Sets: Income Inequality in OECD Countries," Papers 379, Banca Italia - Servizio di Studi.
- Alan Krueger & Mikael Lindahl, 2000.
"Education for Growth: Why and For Whom?,"
808, Princeton University, Department of Economics, Industrial Relations Section..
- Anthony C. Atkinson, 2003. "Income Inequality in OECD Countries: Data and Explanations," CESifo Working Paper Series 881, CESifo Group Munich.
- William R. Hauk & Romain Wacziarg, 2004.
"A Monte Carlo Study of Growth Regressions,"
NBER Technical Working Papers
0296, National Bureau of Economic Research, Inc.
- Rehme, Gunther, 2002.
"(Re)Distribution of Personal Incomes, Education and Economic Performance Across Countries,"
UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Günther Rehme, 2002. "(Re-)Distribution of Personal Incomes, Education and Economic Performance Across Countries," CESifo Working Paper Series 711, CESifo Group Munich.
- Fabio Canova, 1997.
"Testing for convergence clubs in income per-capita: A predictive density approach,"
Economics Working Papers
404, Department of Economics and Business, Universitat Pompeu Fabra, revised Jun 1999.
- Fabio Canova, 2004. "Testing for Convergence Clubs in Income Per Capita: A Predictive Density Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(1), pages 49-77, 02.
- Canova, Fabio, 1999. "Testing for Convergence Clubs in Income per-capita: A Predictive Density Approach," CEPR Discussion Papers 2201, C.E.P.R. Discussion Papers.
- William A. Brock & Steven N.Durlauf, 2000.
"Growth Economics and Reality,"
NBER Working Papers
8041, National Bureau of Economic Research, Inc.
- Knowles, Stephen, 2001. "Inequality and Economic Growth: The Empirical Relationship Reconsidered in the Light of Comparable Data," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Abhijit V. Banerjee & Esther Duflo, 2000.
"Inequality and Growth: What Can the Data Say?,"
NBER Working Papers
7793, National Bureau of Economic Research, Inc.
- Sonedda, Daniela, 2003. "Wealth Inequality, Income Redistribution and Growth in 15 OECD countries," Royal Economic Society Annual Conference 2003 190, Royal Economic Society.
- Danny Quah, 2000. "Cross Country Growth Comparison: Theory to Empirics," CEP Discussion Papers dp0442, Centre for Economic Performance, LSE.
- N. Gobbin & G. Rayp, 2004. "Income Inequality Data in Growth Empirics: From Cross-Sections to Time Series," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 04/252, Ghent University, Faculty of Economics and Business Administration.
- N. Gobbin & G. Rayp & D. Van De Gaer, 2004.
"Inequality and Growth: From Micro Theory to Macro Empirics,"
Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium
04/258, Ghent University, Faculty of Economics and Business Administration.
- Niko Gobbin & Glenn Rayp & Dirk Van de gaer, 2007. "Inequality And Growth: From Micro Theory To Macro Empirics," Scottish Journal of Political Economy, Scottish Economic Society, vol. 54(4), pages 508-530, 09.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.