Does inequality harm growth only in democracies? A replication and extension

Stephen Knack and Philip Keefer

MPRA Paper from University Library of Munich, Germany

Abstract: We reconstruct a dataset used by Persson and Tabellini (AER, 1994) to test the robustness of their finding that inequality reduces income growth, but only in democracies. We find that their result is highly sensitive to the use of data sources on both democracy and inequality. When we substitute more commonly-used and higher-quality data sources for democracy and inequality, their key result disappears.

Keywords: inequality; democracy; growth (search for similar items in EconPapers)
JEL-codes: D63 D72 P48 (search for similar items in EconPapers)
Date: 1996
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Published in American Journal of Political Science 1.41(1997): pp. 323-332

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:25043

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