IDEAS home Printed from https://ideas.repec.org/a/auv/jipbud/v20y2015i3p145-163.html
   My bibliography  Save this article

The Role of Institutions in Inequality (in Persian)

Author

Listed:
  • Jalali-Naini, Seyed Ahmad Reza

    (Economics Institue of Management and Planning Studies)

  • Ghafari, Mojtaba Ghafari

    (Islamic Research Institute for Culture and Thought)

Abstract

This study attempts to empirically examine the relationship between the quality of the institutional environment and income inequality. In order to determine the causality and direction of this relationship, a Vector Autoregressive Model (VAR) has been used, and to overcome the limitations pertaining to the data, a panel composed of data from 121 countries has been used and tested; hence, a Panel VAR model (Panel VAR) has been implemented. Civil liberties, political rights, economic freedoms, the risk of countries, six indicators of good governance as institutional indicators, Gini coefficient, and the income ratio of top decile to bottom decile of the population have been considered as the indicators of inequality. According to the results, the inverse relationship between the quality indicators of civil liberties, political rights, economic freedoms, the risk of countries and political stability indices (indices of good governance) with inequality is verified. In other words, the results show that the quality of the institutional environment has positive effects on inequality and poverty, thus better quality institutional environment will lead to less inequality and poverty; in other words, the results indicate that a higher quality of institutional environment will reduce inequality, but there is weak evidence as for the opposite direction for this relationship.

Suggested Citation

  • Jalali-Naini, Seyed Ahmad Reza & Ghafari, Mojtaba Ghafari, 2015. "The Role of Institutions in Inequality (in Persian)," The Journal of Planning and Budgeting (٠صلنامه برنامه ریزی Ùˆ بودجه), Institute for Management and Planning studies, vol. 20(3), pages 145-163, October.
    • Handle: RePEc:auv:jipbud:v:20:y:2015:i:3:p:145-163
    as

    Download full text from publisher

    File URL: http://jpbud.ir/article-1-1108-en.pdf
    Download Restriction: no
    File URL: http://jpbud.ir/article-1-1108-en.html
    Download Restriction: no
    File URL: http://jpbud.ir/article-1-1108-fa.html
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:auv:jipbud:v:20:y:2015:i:3:p:145-163. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Nahid Jebeli (email available below). General contact details of provider: https://edirc.repec.org/data/irpdair.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.