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Joint determinations of inequality and growth

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  • Huang, Ho-Chuan (River)
  • Lin, Yi-Chen
  • Yeh, Chih-Chuan

Abstract

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.

Suggested Citation

  • Huang, Ho-Chuan (River) & Lin, Yi-Chen & Yeh, Chih-Chuan, 2009. "Joint determinations of inequality and growth," Economics Letters, Elsevier, vol. 103(3), pages 163-166, June.
    • Handle: RePEc:eee:ecolet:v:103:y:2009:i:3:p:163-166
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    References listed on IDEAS

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