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 | |
| State | Published - Apr 2011 |
| Externally published | Yes |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 1 No Poverty
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SDG 8 Decent Work and Economic Growth
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SDG 10 Reduced Inequalities
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