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Inequality and growth: inverted and uninverted U-shapes


  • Juan Vicente
  • Luis Borge


Inequality follows different patterns along a high-income sector enlargement growth. Even under Kuznets' basic assumptions inequality may show a convex shape at the end of the process. Moreover, when some of the basic assumptions are removed, the inequality path may be convex along the whole process or display a reversal from inverted to uninverted U-shapes along the same process. That is why empirical studies should specify which process and which phase within it they are dealing with on testing Kuznets' hypothesis.

Suggested Citation

  • Juan Vicente & Luis Borge, 2000. "Inequality and growth: inverted and uninverted U-shapes," Applied Economics Letters, Taylor & Francis Journals, vol. 7(8), pages 497-500.
  • Handle: RePEc:taf:apeclt:v:7:y:2000:i:8:p:497-500 DOI: 10.1080/13504850050033247

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    References listed on IDEAS

    1. Ian Domowitz & R. Glenn Hubbard & Bruce C. Petersen, 1986. "Business Cycles and the Relationship Between Concentration and Price-Cost Margins," RAND Journal of Economics, The RAND Corporation, vol. 17(1), pages 1-17, Spring.
    2. Hall, Robert E, 1988. "The Relation between Price and Marginal Cost in U.S. Industry," Journal of Political Economy, University of Chicago Press, vol. 96(5), pages 921-947, October.
    3. Schmalensee, Richard, 1989. "Inter-industry studies of structure and performance," Handbook of Industrial Organization,in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 16, pages 951-1009 Elsevier.
    4. Roeger, Werner, 1995. "Can Imperfect Competition Explain the Difference between Primal and Dual Productivity Measures? Estimates for U.S. Manufacturing," Journal of Political Economy, University of Chicago Press, vol. 103(2), pages 316-330, April.
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    Cited by:

    1. Ayal Kimhi, 2004. "Growth, Inequality and Labor Markets in LDCs: A Survey," CESifo Working Paper Series 1281, CESifo Group Munich.

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