Inequality and Institutions

Alberto Chong and Mark Gradstein
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Mark Gradstein: Department of Economics, Ben Gurion University, CEPR, CESifo, IZA

The Review of Economics and Statistics, 2007, vol. 89, issue 3, 454-465

Abstract: This paper presents theory and evidence on the relationship between inequality and institutional quality. We exhibit a model in which the two may dynamically reinforce each other and set to test this relationship with a broad array of institutional measures. The double causality between institutional strength and a more equal distribution of income is empirically established using dynamic panel and linear feedback analysis. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Date: 2007
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Related works:
Working Paper: Inequality and Institutions (2004)
Working Paper: Inequality and Institutions (2004)
Working Paper: Inequality and Institutions (2004)
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