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Measures of Income Distribution and Economic Growth

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  • Mo Pak Hung

    () (Hong Kong Baptist University)

Abstract

In this study, the empirical contents of various income inequality measures are compared under an identical framework with a well-tested data set. Our study suggests that long-term income inequality has a strong negative effect on Gross Domestic Product (GDP) growth under different measurements. Moreover, governments should investigate further into changes in the income size of the middle class as an indicator for potential changes in social stability, investment, and GDP growth, besides focusing on the Gini coefficient, which they predominantly do now.

Suggested Citation

  • Mo Pak Hung, 2011. "Measures of Income Distribution and Economic Growth," Journal of Income Distribution, Ad libros publications inc., vol. 20(3-4), pages 24-42, September.
  • Handle: RePEc:jid:journl:y:2011:v:20:i:3-4:p:24-42
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    File URL: http://jid.journals.yorku.ca/index.php/jid/article/view/23282
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    Cited by:

    1. Zimny, Jacek & Michalak, Piotr & Szczotka, Krzysztof, 2015. "Polish heat pump market between 2000 and 2013: European background, current state and development prospects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 48(C), pages 791-812.

    More about this item

    Keywords

    income distribution; economic growth;

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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