IDEAS home Printed from https://ideas.repec.org/a/eaa/aeinde/v4y2004i1_14.html
   My bibliography  Save this article

Growth-Inequality Relationship. An Analytical Approach and Some Evidence for Latin America

Author

Listed:
  • Alvargonzalez, M.
  • Lopez, A.
  • Perez, R.

Abstract

The explanation of economic inequality and its relationship to growth has produced a great amount of research. Kuznets (1955) formulated the “inverted-U” hypothesis according to which inequality increases in the initial levels of development to decrease later on, after a certain point of return. This proposition has been the subject of great attention with many theoretical and empirical contributions. In this paper we present an analytical approach to the growth-inequality relationship, including not only the most common measures, but also new indicators based on the information theory.The work also includes the estimation of the growth-inequality relationship and the contrast of the Kuznets´ hypothesis within Latin America.

Suggested Citation

  • Alvargonzalez, M. & Lopez, A. & Perez, R., 2004. "Growth-Inequality Relationship. An Analytical Approach and Some Evidence for Latin America," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 4(2).
  • Handle: RePEc:eaa:aeinde:v:4:y:2004:i:1_14
    as

    Download full text from publisher

    File URL: http://www.usc.es/economet/reviews/aeid426.pdf
    Download Restriction: No

    References listed on IDEAS

    as
    1. John Thornton, 2001. "The Kuznets inverted-U hypothesis: panel data evidence from 96 countries," Applied Economics Letters, Taylor & Francis Journals, vol. 8(1), pages 15-16.
    2. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-625, April.
    3. P. J. Dawson, 1997. "On testing Kuznets' economic growth hypothesis," Applied Economics Letters, Taylor & Francis Journals, vol. 4(7), pages 409-410.
    4. Dollar, David & Kraay, Aart, 2002. "Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
    5. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-920, July.
    6. Li, Hongyi & Squire, Lyn & Zou, Heng-fu, 1998. "Explaining International and Intertemporal Variations in Income Inequality," Economic Journal, Royal Economic Society, vol. 108(446), pages 26-43, January.
    7. Juan Antonio Duro Moreno, 2001. "Cross-country inequalities in aggregate welfare: some evidence," Applied Economics Letters, Taylor & Francis Journals, vol. 8(6), pages 403-406.
    8. Weisskoff, Richard, 1970. "Income Distribution and Economic Growth in Puerto Rico, Argentina, and Mexico," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 16(4), pages 303-332, December.
    9. V. V. Bhanoji Rao & Shandre Mugan Thangavelu, 2000. "Do poor countries tend to grow faster than rich countries?," Applied Economics Letters, Taylor & Francis Journals, vol. 7(10), pages 629-632.
    10. Shengxiu Zhu & Les Oxley, 2001. "Testing models of growth - a two-sector model of the USA," Applied Economics Letters, Taylor & Francis Journals, vol. 8(5), pages 325-329.
    11. Yu Hsing & David Smyth, 1994. "Kuznets's inverted-U hypothesis revisited," Applied Economics Letters, Taylor & Francis Journals, vol. 1(7), pages 111-113.
    12. 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.
    13. Matthew Higgins & Jeffrey G. Williamson, 1999. "Explaining inequality the world round: cohort size, Kuznets curves, and openness," Staff Reports 79, Federal Reserve Bank of New York.
    14. Sylwester, Kevin, 2000. "Income inequality, education expenditures, and growth," Journal of Development Economics, Elsevier, vol. 63(2), pages 379-398, December.
    15. Knight, J B, 1976. "Explaining Income Distribution in Less Developed Countries: A Framework and an Agenda," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 38(3), pages 161-177, August.
    16. Ram, Rati, 1989. "Level of Development and Income Inequality: An Extension of Kuznets-Hypothesis to the World Economy," Kyklos, Wiley Blackwell, vol. 42(1), pages 73-88.
    17. Braulke, Michael, 1983. "A Note on Kuznets' U," The Review of Economics and Statistics, MIT Press, vol. 65(1), pages 135-139, February.
    18. Park, Walter G & Brat, David A, 1995. "A Global Kuznets Curve?," Kyklos, Wiley Blackwell, vol. 48(1), pages 105-131.
    19. Savvides, Andreas & Stengos, Thanasis, 2000. "Income inequality and economic development: evidence from the threshold regression model," Economics Letters, Elsevier, vol. 69(2), pages 207-212, November.
    20. Ahluwalia, Montek S, 1976. "Income Distribution and Development: Some Stylized Facts," American Economic Review, American Economic Association, vol. 66(2), pages 128-135, May.
    21. Robinson, Sherman, 1976. "A Note on the U Hypothesis Relating Income Inequality and Economic Development," American Economic Review, American Economic Association, vol. 66(3), pages 437-440, June.
    22. Tomson Ogwang, 2000. "Inter-country inequality in human development indicators," Applied Economics Letters, Taylor & Francis Journals, vol. 7(7), pages 443-446.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Christopher E.S. WARBURTON, 2016. "The Bottom Twenty: An Analysis Of Income Inequality In High Income And Developing Countries, 1990-2010," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 16(2), pages 5-24.

    More about this item

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

    Statistics

    Access and download statistics

    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:eaa:aeinde:v:4:y:2004:i:1_14. 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: (M. Carmen Guisan). General contact details of provider: http://www.usc.es/economet/eaa.htm .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.