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

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

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.

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Article provided by Euro-American Association of Economic Development in its journal Applied Econometrics and International Development.

Volume (Year): 4 (2004)
Issue (Month): 2 ()

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Handle: RePEc:eaa:aeinde:v:4:y:2004:i:1_14
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