Channels Through Which Income Inequality Influences Growth: Fiscal and Political Instability Approaches

Araceli Ortega Díaz

DEGIT Conference Papers from DEGIT, Dynamics, Economic Growth, and International Trade

Abstract: The present work encloses an analysis related to the channels through which income inequality affects economic growth and another related to the sources of economic growth. In the first, we use two-stage estimation with fixed effects finding that the fiscal effects of inequality on growth may depend on the government expenditure covariate. Secondly, we constructed a political instability index using principal components analysis, and look at its influence on income inequality and economic growth using dynamic panel data analysis for the 32 Federal Entities of Mexico. We find that political instability is bad for growth, and the fiscal effects of inequality on growth are not conclusive and need to be studied taking into account different fiscal variables.

Keywords: Panel data models; inequality; growth (search for similar items in EconPapers)
JEL-codes: C23 O4 O54 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2005-06
New Economics Papers: this item is included in nep-dev and nep-pol
References: Add references at CitEc
Citations:

Downloads: (external link)
http://degit.sam.sdu.dk/papers/degit_10/C010_030.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to degit.sam.sdu.dk:80 (No such host is known. )

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:deg:conpap:c010_030

Access Statistics for this paper

More papers in DEGIT Conference Papers from DEGIT, Dynamics, Economic Growth, and International Trade Contact information at EDIRC.
Bibliographic data for series maintained by Jan Pedersen ().