Inequality and Growth: Does Time Change Anything?
The econometric analysis of economic growth has always been subject to major flaws and shortcomings. Data scarcity and reliability, parameter heterogeneity, omitted variable bias, endogeneity problems, … have seriously tainted estimation results. In this paper we propose an alternative framework that explicitly deals with these issues. We investigate the relation between income inequality and economic growth in a number of OECD countries in a cointegrated VAR-setting. Our results suggest that different models hold for different countries. However, for most countries the imperfect markets model better describes reality than the complete markets model.
|Date of creation:||Feb 2004|
|Contact details of provider:|| Postal: Hoveniersberg 4, B-9000 Gent|
Phone: ++ 32 (0) 9 264 34 61
Fax: ++ 32 (0) 9 264 35 92
Web page: http://www.ugent.be/eb
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Brock,W.A. & Durlauf,S.N., 2000.
"Growth economics and reality,"
24, Wisconsin Madison - Social Systems.
- Knowles, Stephen, 2001.
"Inequality and Economic Growth: The Empirical Relationship Reconsidered in the Light of Comparable Data,"
Working Paper Series
UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Stephen Knowles, 2005. "Inequality and Economic Growth: The Empirical Relationship Reconsidered in the Light of Comparable Data," Journal of Development Studies, Taylor & Francis Journals, vol. 41(1), pages 135-159.
- Günther Rehme, 2002.
"(Re-)Distribution of Personal Incomes, Education and Economic Performance Across Countries,"
CESifo Working Paper Series
711, CESifo Group Munich.
- Rehme, Gunther, 2002. "(Re)Distribution of Personal Incomes, Education and Economic Performance Across Countries," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Fabio Canova, 1997.
"Testing for convergence clubs in income per-capita: A predictive density approach,"
Economics Working Papers
404, Department of Economics and Business, Universitat Pompeu Fabra, revised Jun 1999.
- Fabio Canova, 2004. "Testing for Convergence Clubs in Income Per Capita: A Predictive Density Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(1), pages 49-77, 02.
- Canova, Fabio, 2001. "Testing for convergence clubs in income per-capita : a predictive density approach," HWWA Discussion Papers 139, Hamburg Institute of International Economics (HWWA).
- Canova, Fabio, 1999. "Testing for Convergence Clubs in Income per-capita: A Predictive Density Approach," CEPR Discussion Papers 2201, C.E.P.R. Discussion Papers.
- Anthony C. Atkinson, 2003.
"Income Inequality in OECD Countries: Data and Explanations,"
CESifo Working Paper Series
881, CESifo Group Munich.
- A. B. Atkinson, 2003. "Income Inequality in OECD Countries: Data and Explanations," CESifo Economic Studies, CESifo, vol. 49(4), pages 479-513.
- Abhijit V. Banerjee & Esther Duflo, 2000.
"Inequality and Growth: What Can the Data Say?,"
NBER Working Papers
7793, National Bureau of Economic Research, Inc.
- Mikael Lindahl & Alan B. Krueger, 2001.
"Education for Growth: Why and for Whom?,"
Journal of Economic Literature,
American Economic Association, vol. 39(4), pages 1101-1136, December.
- William R. Hauk & Romain Wacziarg, 2004.
"A Monte Carlo Study of Growth Regressions,"
NBER Technical Working Papers
0296, National Bureau of Economic Research, Inc.
- Danny Quah, 2000. "Cross Country Growth Comparison: Theory to Empirics," CEP Discussion Papers dp0442, Centre for Economic Performance, LSE.
- Atkinson, A.B. & Brandolini, A., 2000.
"Promise and Pitfalls in the Use of 'Secondary' Data -Sets: Income Inequality in OECD Countries,"
379, Banca Italia - Servizio di Studi.
- Anthony B. Atkinson & Andrea Brandolini, 2000. "Promise and Pitfalls in the Use of 'Secondary' Data-Sets: Income Inequality in OECD Countries," Temi di discussione (Economic working papers) 379, Bank of Italy, Economic Research and International Relations Area.
- Sonedda, Daniela, 2003. "Wealth Inequality, Income Redistribution and Growth in 15 OECD countries," Royal Economic Society Annual Conference 2003 190, Royal Economic Society.
When requesting a correction, please mention this item's handle: RePEc:rug:rugwps:04/230. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nathalie Verhaeghe)
If references are entirely missing, you can add them using this form.