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The Relationship between Inequality and Growth: Evidence from New Data

Swiss Journal of Economics and Statistics volume 153, pages 183–225 (2017)Cite this article

Summary

The relationship between inequality and growth has attracted a lot of attention in the previous literature. Estimation of this relationship may be biased by simultaneity, omitted variables and measurement error. The present paper contributes to the existing work by introducing the wealth Gini coefficient as a new inequality measure. The most reliable and recent data on income inequality are used for estimation. We employ the Arellano-Bond GMM estimation technique and we find that there seems to be a positive relationship between wealth inequality and real per capita GDP growth, but this relationship is not robust to different model specifications.

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Authors and Affiliations

  1. Institute for Economic Research, Università della Svizzera italiana, 6900, Lugano, Switzerland

    Costanza Naguib

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  1. Costanza Naguib
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Correspondence to Costanza Naguib.

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I would like to thank the Editor Volker Grossmann and two anonymous referees for their insightful suggestions.

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Naguib, C. The Relationship between Inequality and Growth: Evidence from New Data. Swiss J Economics Statistics 153, 183–225 (2017). https://doi.org/10.1007/BF03399507

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