Inequality and Growth: The Neglected Time Dimension

Konferenzbeitrag

When it comes to the inequality-growth relationship, the empirical literature offers contradictory assessments: Estimators based on time-series variation only (i.e., differences-based estimators) indicate a strong positive link while estimators also exploiting the cross-sectional variation (i.e., level-based estimators) suggest a negative relationship. Taking advantage of a new dataset, the present paper confirms this conflicting pattern - but also offers an explanation on the basis of a simple model: The seemingly inconsistent empirical results just mirror different aspects of reality. More specifically, we argue that the differences-based methods are prone to reflect the (mostly) positive short- or medium-run implications of inequality while the level-based estimators also incorporate the negative consequences - which require more time to materialize. Thus, the latter estimates come close to reflect the adverse overall impact of inequality in the long run.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Empirical Studies of Inequality ; No. E4-V3

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Macroeconomic Analyses of Economic Development ; Economic Development: Human Resources; Human Development; Income Distribution; Migration ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
• Thema: Inequality ; growth ; medium-run effects ; long-run effects

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Oechslin, Manuel ; Halter, Daniel ; Zweimüller, Josef
• Ereignis: Veröffentlichung
• (wer): Verein für Socialpolitik
• (wo): Frankfurt a. M.
• (wann): 2010

Weitere Informationen

• Handle: http://hdl.handle.net/10419/37461
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ