Income Inequality and Growth: a Panel Study of Swedish Counties 1960-2000

Ruth-Aida Nahum ()

No 2005:3, Arbetsrapport from Institute for Futures Studies

Abstract: This paper explores the relationship between income inequality and growth using panel data on Swedish counties from 1960-2000. Compared to standard methods of estimating this relationship yearly regional level data are used, and inequality is allowed to be endogenous. We find a significant positive impact of inequality on growth, but the magnitude of the effect decreases with the length of the growth period studied. When allowing income inequality to be endogenous, using a panel 2SLS IV estimation, we find positive effect of inequality on 1 to 5-year growth rates, when significant, whereas the effect on 10-year growth rates are not clear cut.

Keywords: Income inequality; regional economic growth; panel data (search for similar items in EconPapers)
JEL-codes: D31 O15 O40 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2005-03
New Economics Papers: this item is included in nep-geo
Note: ISSN 1652-120X ISBN 91-89655-61-3
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
http://www.framtidsstudier.se/wp-content/uploads/2 ... WzoboxFPAiu48eY3.pdf (application/pdf)

Related works:
Working Paper: Income Inequality and Growth: A Panel Study of Swedish Counties 1960-2000 (2005)
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:hhs:ifswps:2005_003

Access Statistics for this paper

More papers in Arbetsrapport from Institute for Futures Studies Institute for Futures Studies, Box 591, SE-101 31 Stockholm, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Erika Karlsson ().