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DESIGUALDADE E CRECEMENTO ECONÓMICO. CÍRCULOS VICIOSOS OU VIRTUOSOS? (Galician)
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- Author(s): MENÉNDEZ, ANA JESÚS LÓPEZ; COWELL, FRANK A.
- Source:
Galician Journal of Economics / Revista Galega de Economía; set2013, Vol. 22, p15-36, 22p- Subject Terms:
- Source:
- Additional Information
- Alternate Title: Inequality and Economic Growth. Vicious or Virtuous Circles? (English)
- Abstract: The relationship between income inequality and economic growth has been widely studied, leading to a controversial debate. Regarding the effect of economic growth on inequality, Kuznets' inverted-U hypothesis (1955) suggests that inequality first rises with growth and then falls after a turning point. This model has been extended by Anand and Kanbur (1993), and its empirical applications have provided a wide variety of results, depending on the statistical information, the indicators and the estimation techniques. With regard to the effects of inequality on growth, on a theoretical basis the relationship could be of any sign and thus the initial works by Lewis (1954) and Kaldor (1956) defend the existence of positive effects while Alesina & Rodrick (1994), Persson & Tabellini (1994), and Deininger & Squire (1998) assume a negative relationship. The diversity of theoretical assumptions and empirical evidence has stimulated the debate without achieving a consensus about the existence of vicious or virtuous circles. In this context the present paper aims to provide new evidence about the growth-inequality relationship, paying attention to the income level in a double sense. First, we introduce a classification of countries according to their income levels, and second we distinguish between inequality relating to low and high incomes. [ABSTRACT FROM AUTHOR]
- Abstract: Copyright of Galician Journal of Economics / Revista Galega de Economía is the property of Universidad de Santiago de Compostela, Servicio de Publicaciones and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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