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The Relationship between Inequality and Growth: Evidence from New Data

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  • Costanza Naguib

    (Università della Svizzera italiana)

Abstract

Summary The relationship between inequality and growth has attracted a lot of attention in the previous literature. Estimation of this relationship may be biased by simultaneity, omitted variables and measurement error. The present paper contributes to the existing work by introducing the wealth Gini coefficient as a new inequality measure. The most reliable and recent data on income inequality are used for estimation. We employ the Arellano-Bond GMM estimation technique and we find that there seems to be a positive relationship between wealth inequality and real per capita GDP growth, but this relationship is not robust to different model specifications.

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  • Costanza Naguib, 2017. "The Relationship between Inequality and Growth: Evidence from New Data," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 153(3), pages 183-225, July.
  • Handle: RePEc:spr:sjecst:v:153:y:2017:i:3:d:10.1007_bf03399507
    DOI: 10.1007/BF03399507
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    More about this item

    Keywords

    D30; O40;

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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