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Conditional and unconditional inequality and growth relationships


  • Almas Heshmati


This study tests the conditional and unconditional relationship between income inequality and growth in the post-Second World War period using WIDER inequality database. Regression results suggest that income inequality is declining over time. Inequality is also declining in growth of income. There is a significant regional heterogeneity in the levels and development of inequality over time. The Kuznets hypothesis represents a global U-shape relationship between inequality and growth.

Suggested Citation

  • Almas Heshmati, 2006. "Conditional and unconditional inequality and growth relationships," Applied Economics Letters, Taylor & Francis Journals, vol. 13(14), pages 925-931.
  • Handle: RePEc:taf:apeclt:v:13:y:2006:i:14:p:925-931 DOI: 10.1080/13504850500401809

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    References listed on IDEAS

    1. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," World Bank Economic Review, World Bank Group, vol. 10(3), pages 565-591, September.
    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.
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    8. Ravallion, Martin, 1998. "Does aggregation hide the harmful effects of inequality on growth?," Economics Letters, Elsevier, vol. 61(1), pages 73-77, October.
    9. Persson, Torsten & Tabellini, Guido, 1994. "Is Inequality Harmful for Growth?," American Economic Review, American Economic Association, vol. 84(3), pages 600-621, June.
    10. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
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    Cited by:

    1. Sato, Sumie & Fukushige, Mototsugu, 2009. "Globalization and economic inequality in the short and long run: The case of South Korea 1975-1995," Journal of Asian Economics, Elsevier, vol. 20(1), pages 62-68, January.

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