A Reassessment of the Relationship between Inequality and Growth Export

@article{citeulike:950434, abstract = {This paper challenges the current belief that income inequality has a negative relationship with economic growth. It uses an improved data set on income inequality which not only reduces measurement error, but also allows estimation via a panel technique. Panel estimation makes it possible to control for time-invariant country-specific effects, therefore eliminating a potential source of omitted-variable bias. Results suggest that in the short and medium term, an increase in a country's level of income inequality has a significant positive relationship with subsequent economic growth. This relationship is highly robust across samples, variable definitions, and model specifications.}, author = {Forbes, Kristin J.}, citeulike-article-id = {950434}, citeulike-linkout-0 = {http://www.jstor.org/stable/117312}, journal = {The American Economic Review}, keywords = {dgpolde, growth, inequality}, number = {4}, pages = {869--887}, posted-at = {2009-06-13 15:19:46}, priority = {2}, title = {A Reassessment of the Relationship between Inequality and Growth}, url = {http://www.jstor.org/stable/117312}, volume = {90}, year = {2000} }

TY - JOUR ID - citeulike:950434 L3 - citeulike-article-id:950434 N2 - This paper challenges the current belief that income inequality has a negative relationship with economic growth. It uses an improved data set on income inequality which not only reduces measurement error, but also allows estimation via a panel technique. Panel estimation makes it possible to control for time-invariant country-specific effects, therefore eliminating a potential source of omitted-variable bias. Results suggest that in the short and medium term, an increase in a country's level of income inequality has a significant positive relationship with subsequent economic growth. This relationship is highly robust across samples, variable definitions, and model specifications. IS - 4 JF - The American Economic Review EP - 887 TI - A Reassessment of the Relationship between Inequality and Growth VL - 90 SP - 869 KW - dgpolde KW - growth KW - inequality AU - Forbes, Kristin PY - 2000/// UR - http://www.jstor.org/stable/117312 ER -