Effects of Income Distribution on Growth

Edgar Pardo-Beltrán
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Edgar Pardo-Beltrán: New School for Social Research and Universidad Externado de Colombia, http://www.newschool.edu

No 2002-16, SCEPA Working Papers from Schwartz Center for Economic Policy Analysis (SCEPA), The New School

Abstract: Several theories hold that income distribution affects economic growth. Some of them use cross-section country regression analysis to demonstrate their beliefs. This procedure has such a bulk of problems that its results should be analyzed carefully. Theories supported by this kind of empirical verification are most affected. Results suggest that a relationship between income distribution and economic growth exists but it seems to be nonlinear, complex and dynamic. Alternative statistical methods can be used in combination with historical studies and case studies, where institutions are included, for a better understanding of prevalent linkages.

Keywords: income distribution; economic growth; economic development; country studies; cross-sectional models (search for similar items in EconPapers)
JEL-codes: C21 O11 O15 O40 O50 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev
Date: 2002-11-04
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Persistent link: http://EconPapers.repec.org/RePEc:epa:cepawp:2002-16

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