Advanced

Income Inequality, In-Kind Benefits and Economic Growth: Studied Using a Modified Gini Index

Wennberg, Elias LU (2016) NEKH01 20161
Department of Economics
Abstract
A negative long-run relationship between inequality and growth has been found for a variety of inequality measures, but as these measures invariably ignore the pro-poor effect of in-kind redistribution, one may question the reliability of previous studies’ inequality-growth estimates. In this paper, I incorporate in-kind benefits into the Gini index and present new estimates of the inequality-growth impact for the period 1980―2007, in what is believed to be the first inequality-growth study of its kind. The results suggest that a negative relationship between inequality and growth is present both with and without in-kind benefits. The results are robust to changes in model specifications, standardization of the inequality variable, control... (More)
A negative long-run relationship between inequality and growth has been found for a variety of inequality measures, but as these measures invariably ignore the pro-poor effect of in-kind redistribution, one may question the reliability of previous studies’ inequality-growth estimates. In this paper, I incorporate in-kind benefits into the Gini index and present new estimates of the inequality-growth impact for the period 1980―2007, in what is believed to be the first inequality-growth study of its kind. The results suggest that a negative relationship between inequality and growth is present both with and without in-kind benefits. The results are robust to changes in model specifications, standardization of the inequality variable, control variable definitions and generally against removal of single observations. (Less)
Please use this url to cite or link to this publication:
author
Wennberg, Elias LU
supervisor
organization
course
NEKH01 20161
year
type
M2 - Bachelor Degree
subject
keywords
Income Inequality, In-Kind Benefits, Growth, MGINI, Gini
language
English
id
8871890
date added to LUP
2016-05-11 14:31:19
date last changed
2016-05-11 14:31:19
@misc{8871890,
  abstract     = {A negative long-run relationship between inequality and growth has been found for a variety of inequality measures, but as these measures invariably ignore the pro-poor effect of in-kind redistribution, one may question the reliability of previous studies’ inequality-growth estimates. In this paper, I incorporate in-kind benefits into the Gini index and present new estimates of the inequality-growth impact for the period 1980―2007, in what is believed to be the first inequality-growth study of its kind. The results suggest that a negative relationship between inequality and growth is present both with and without in-kind benefits. The results are robust to changes in model specifications, standardization of the inequality variable, control variable definitions and generally against removal of single observations.},
  author       = {Wennberg, Elias},
  keyword      = {Income Inequality,In-Kind Benefits,Growth,MGINI,Gini},
  language     = {eng},
  note         = {Student Paper},
  title        = {Income Inequality, In-Kind Benefits and Economic Growth: Studied Using a Modified Gini Index},
  year         = {2016},
}