Effects of Income Inequality on Aggregate Output

• Tác giả: Markus Brueckner
• Ngôn ngữ: eng
• Ký hiệu phân loại: 339.22 Distribution of aggregate personal income and wealth
• Thông tin xuất bản: World Bank, Washington, DC, 2015
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 309252
• Chủ đề: 1. CAPITAL ACCUMULATION; 2. ECONOMIC GROWTH; 3. GOVERNMENT EXPENDITURES; 4. INCOME SHARE; 5. INDUSTRIALIZED COUNTRIES

Tóm tắt

This paper estimates the effect of income inequality on real gross domestic product per capita using a panel of 104 countries during the period 1970-2010. The empirical analysis addresses endogeneity issues by using instrumental variables estimation and controlling for country and time fixed effects. The analysis finds that, on average, income inequality has a significant negative effect on transitional gross domestic product per capita growth and the long-run level of gross domestic product per capita. However, the impact varies by the level of economic development, so much so that in poor countries income inequality has a significant positive effect on gross domestic product per capita.