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Inequality Growth Simultaneous equations model 1
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Huang, Ho-Chuan 1 Lin, Yi-Chen 1 Yeh, Chih-Chuan 1
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Economics Letters 1
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Joint determinations of inequality and growth
Huang, Ho-Chuan; Lin, Yi-Chen; Yeh, Chih-Chuan - In: Economics Letters 103 (2009) 3, pp. 163-166
This paper jointly estimates the effect of inequality on growth and the impact of growth on inequality vis a simultaneous equations model. Results show that higher inequality is detrimental to growth whereas faster growth worsens the extent of income distribution.
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