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An assessment of the growth and inequality causality relationship

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  • Djeto Assane
  • Abbas Grammy

Abstract

Applying multivariate cointegration analysis to US data, we find growth unidirectionally and significantly Granger causes inequality.

Suggested Citation

  • Djeto Assane & Abbas Grammy, 2003. "An assessment of the growth and inequality causality relationship," Applied Economics Letters, Taylor & Francis Journals, vol. 10(14), pages 871-873.
  • Handle: RePEc:taf:apeclt:v:10:y:2003:i:14:p:871-873
    DOI: 10.1080/13504850310001635249
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    References listed on IDEAS

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    1. Roberto Perotti, 1993. "Political Equilibrium, Income Distribution, and Growth," Review of Economic Studies, Oxford University Press, vol. 60(4), pages 755-776.
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    6. Persson, Torsten & Tabellini, Guido, 1994. "Is Inequality Harmful for Growth?," American Economic Review, American Economic Association, vol. 84(3), pages 600-621, June.
    7. Alesina, Alberto & Perotti, Roberto, 1994. "The Political Economy of Growth: A Critical Survey of the Recent Literature," The World Bank Economic Review, World Bank Group, vol. 8(3), pages 351-371, September.
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    9. Kristin J. Forbes, 2000. "A Reassessment of the Relationship between Inequality and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 869-887, September.
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    Cited by:

    1. Francisco Javier de Miguel Velez & Jesus Perez-Mayo, 2006. "Linear SAM models for inequality changes analysis: an application to the Extremadurian economy," Applied Economics, Taylor & Francis Journals, vol. 38(20), pages 2393-2403.
    2. Gil-Alana, Luis A. & Škare, Marinko & Pržiklas-Družeta, Romina, 2019. "Measuring inequality persistence in OECD 1963–2008 using fractional integration and cointegration," The Quarterly Review of Economics and Finance, Elsevier, vol. 72(C), pages 65-72.
    3. Vicente German-Soto & Chapa Cantú, 2015. "Cointegration with structural changes between per capita product and income inequality in Mexico," Applied Economics, Taylor & Francis Journals, vol. 47(49), pages 5215-5228, October.
    4. Dipanwita Sarkar, 2007. "The role of human capital in economic growth revisited," Applied Economics Letters, Taylor & Francis Journals, vol. 14(6), pages 419-423.
    5. João Sousa Andrade & Adelaide Duarte & Marta Simões, 2011. "Inequality and Growth in Portugal: a time series analysis," GEMF Working Papers 2011-11, GEMF, Faculty of Economics, University of Coimbra.

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