Abstract
This paper uses a new comprehensive cross-state panel for the United States over the 1945-2004 period to reassess the relationship between income inequality and economic development. By employing the pooled mean group estimator of, it detects a long-run cointegrating association between inequality and development (as well as its squared term). Moreover, their relationship is better characterized by a U shape rather than the inverted-U profile asserted by The evidence is robust to a variety of sensitivity tests. (JEL C14, C21, O11, O15)
Original language | English |
---|---|
Pages (from-to) | 250-260 |
Number of pages | 11 |
Journal | Contemporary Economic Policy |
Volume | 29 |
Issue number | 2 |
DOIs | |
Publication status | Published - 2011 Apr |
Externally published | Yes |
ASJC Scopus subject areas
- General Business,Management and Accounting
- Economics and Econometrics
- Public Administration