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Growth-Inequality Relationship. An Analytical Approach and Some Evidence for Latin America

M. Alvargonzalez, Ana López-Menéndez () and Rigoberto Pérez ()

Applied Econometrics and International Development, 2004, vol. 4, issue 2

Abstract: The explanation of economic inequality and its relationship to growth has produced a great amount of research. Kuznets (1955) formulated the “inverted-U” hypothesis according to which inequality increases in the initial levels of development to decrease later on, after a certain point of return. This proposition has been the subject of great attention with many theoretical and empirical contributions. In this paper we present an analytical approach to the growth-inequality relationship, including not only the most common measures, but also new indicators based on the information theory.The work also includes the estimation of the growth-inequality relationship and the contrast of the Kuznets´ hypothesis within Latin America.

JEL-codes: C1 D31 I32 O54 (search for similar items in EconPapers)
Date: 2004
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