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Income inequality and economic development: evidence from the threshold regression model

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  • Savvides, Andreas
  • Stengos, Thanasis

Abstract

Using panel data we investigate the relationship between income inequality and economic development. We employ a threshold regression model that allows for endogenous income thresholds and find strong evidence of a two-regime split in our sample.
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Suggested Citation

  • 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.
  • Handle: RePEc:eee:ecolet:v:69:y:2000:i:2:p:207-212
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    References listed on IDEAS

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    1. Anand, Sudhir & Kanbur, S. M. R., 1993. "The Kuznets process and the inequality--development relationship," Journal of Development Economics, Elsevier, vol. 40(1), pages 25-52, February.
    2. 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.
    3. Eusufzai, Zaki, 1997. "The Kuznets hypothesis: An indirect test," Economics Letters, Elsevier, vol. 54(1), pages 81-85, January.
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    More about this item

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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