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Inequality and Institutions

Alberto Chong () and Mark Gradstein

No 1137, IDB Publications (Working Papers) from Inter-American Development Bank

Abstract: This paper presents theory and evidence on the relationship between inequality and institutional quality. We propose a model in which the two dynamically reinforce each other and set out to test this relationship with a broad array of institutional measures. We establish double causality between better institutional quality and a more equal distribution of income, but also demonstrate that the link from the latter dominates the former. These results are shown to be robust to various specifications and different data sources that cover various time-spans.

Keywords: WP-506 (search for similar items in EconPapers)
Date: 2010-12
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Related works:
Journal Article: Inequality and Institutions (2007) Downloads
Working Paper: Inequality and Institutions (2004) Downloads
Working Paper: Inequality and Institutions (2004) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:idb:brikps:1137

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