INEQUALITY AND GROWTH: FROM MICRO THEORY TO MACRO EMPIRICS

Niko Gobbin, Glenn Rayp and Dirk Van de gaer

Scottish Journal of Political Economy, 2007, vol. 54, issue 4, 508-530

Abstract: We show that the way individual income data should be aggregated into an index of inequality in order to explain countries' growth performance is theory specific. A simulation set‐up shows that the use of a wrong measure might obscure the inequality–growth relationship and that the relative performance of different measures of inequality can be informative about the channel through which inequality influences economic growth.

Date: 2007
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https://doi.org/10.1111/j.1467-9485.2007.00427.x

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Working Paper: Inequality and Growth: From Micro Theory to Macro Empirics (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:bla:scotjp:v:54:y:2007:i:4:p:508-530

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