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Redistribution, inequality, and growth revisited: Comment on 'Redistribution, inequality, and growth: new evidence'

Author

Listed:
  • Markus Jäntti
  • Jukka Pirttilä
  • Risto Rönkkö

Abstract

An influential paper by Berg et al., 'Redistribution, inequality, and growth: new evidence', uses the SWIID data to examine the impact of inequality and redistribution on growth in both developing and developed countries. It finds that while inequality is harmful for growth, redistribution does not hamper growth. This comment demonstrates that the redistribution and inequality data the paper uses are not credible. They are largely based on imputations, not actual observations.

Suggested Citation

  • Markus Jäntti & Jukka Pirttilä & Risto Rönkkö, 2020. "Redistribution, inequality, and growth revisited: Comment on 'Redistribution, inequality, and growth: new evidence'," WIDER Working Paper Series wp-2020-117, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2020-117
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    File URL: https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp2020-117.pdf
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    References listed on IDEAS

    as
    1. Stephen Jenkins, 2015. "World income inequality databases: an assessment of WIID and SWIID," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 13(4), pages 629-671, December.
    2. Andrew Berg & Jonathan D. Ostry & Charalambos G. Tsangarides & Yorbol Yakhshilikov, 2018. "Redistribution, inequality, and growth: new evidence," Journal of Economic Growth, Springer, vol. 23(3), pages 259-305, September.
    3. Mr. Jonathan David Ostry & Mr. Andrew Berg & Mr. Charalambos G Tsangarides, 2014. "Redistribution, Inequality, and Growth," IMF Staff Discussion Notes 2014/002, International Monetary Fund.
    4. Frederick Solt, 2015. "On the assessment and use of cross-national income inequality datasets," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 13(4), pages 683-691, December.
    5. Jonathan David Ostry & Andrew Berg & Charalambos G Tsangarides, 2014. "Redistribution, Inequality, and Growth," IMF Staff Discussion Notes 14/02, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Growth; Redistribution; Inequality; Cross-country analysis;
    All these keywords.

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