Working Paper

Effects of Income Inequality on Aggregate Output

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Brueckner, Markus
dc.contributor.author
Lederman, Daniel
dc.date.accessioned
2015-07-17T16:38:47Z
dc.date.available
2015-07-17T16:38:47Z
dc.date.issued
2015-06
dc.date.lastModified
2021-04-23T14:04:07Z
dc.description.abstract
This paper estimates the effect of income inequality on real gross domestic product per capita using a panel of 104 countries during the period 1970–2010. The empirical analysis addresses endogeneity issues by using instrumental variables estimation and controlling for country and time fixed effects. The analysis finds that, on average, income inequality has a significant negative effect on transitional gross domestic product per capita growth and the long-run level of gross domestic product per capita. However, the impact varies by the level of economic development, so much so that in poor countries income inequality has a significant positive effect on gross domestic product per capita.
en
dc.identifier
http://documents.worldbank.org/curated/en/2015/06/24679226/effects-income-inequality-aggregate-output
dc.identifier.uri
http://hdl.handle.net/10986/22203
dc.language
English
dc.language.iso
en_US
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 2317
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
INDUSTRIALIZED COUNTRIES
dc.subject
INCOME SHARE
dc.subject
GOVERNMENT EXPENDITURES
dc.subject
ECONOMIC GROWTH
dc.subject
CAPITAL ACCUMULATION
dc.subject
INCOME
dc.subject
INDIVIDUAL COUNTRIES
dc.subject
INCOME QUINTILES
dc.subject
ECONOMETRIC MODEL
dc.subject
REAL GDP
dc.subject
GDP PER CAPITA
dc.subject
ECONOMIC REVIEW
dc.subject
DEVELOPING COUNTRIES
dc.subject
EMPIRICAL LEVEL
dc.subject
POLICY CIRCLES
dc.subject
FISCAL POLICY
dc.subject
POLICY DISCUSSIONS
dc.subject
VARIABLES
dc.subject
EMPIRICAL STUDIES
dc.subject
LAGGED VALUES
dc.subject
MARGINAL EFFECT
dc.subject
WEALTH
dc.subject
MEASURES
dc.subject
EMPIRICAL LITERATURE
dc.subject
INSTRUMENTS
dc.subject
INCOME INEQUALITY DATA
dc.subject
EMPIRICAL ANALYSIS
dc.subject
DEVELOPMENT
dc.subject
MARKET IMPERFECTIONS
dc.subject
STANDARD DEVIATION
dc.subject
EMPIRICAL RESULTS
dc.subject
DEVELOPMENT ECONOMICS
dc.subject
EDUCATIONAL ATTAINMENT
dc.subject
FOREIGN AID
dc.subject
ECONOMICS OF EDUCATION
dc.subject
DESCRIPTIVE STATISTICS
dc.subject
INCOME INEQUALITY
dc.subject
DATA QUALITY
dc.subject
SIGNIFICANCE LEVEL
dc.subject
SIGNIFICANT NEGATIVE
dc.subject
ECONOMETRICS
dc.subject
PER CAPITA GROWTH
dc.subject
GROSS DOMESTIC PRODUCT PER CAPITA
dc.subject
NEGATIVE COEFFICIENT
dc.subject
INDICATORS
dc.subject
LAND OWNERSHIP
dc.subject
PRODUCT
dc.subject
RELATIVE PRICES
dc.subject
GROSS DOMESTIC PRODUCT
dc.subject
TAXES
dc.subject
CONSUMPTION
dc.subject
HUMAN CAPITAL
dc.subject
CREDIT MARKET IMPERFECTIONS
dc.subject
EXPLANATORY VARIABLE
dc.subject
COUNTRY LEVEL
dc.subject
CAPITAL
dc.subject
ECONOMIC STUDIES
dc.subject
ESTIMATED COEFFICIENT
dc.subject
VALUE
dc.subject
DEPENDENT VARIABLE
dc.subject
LAND INEQUALITY
dc.subject
CREDIT
dc.subject
MACROECONOMICS
dc.subject
POOR COUNTRIES
dc.subject
NATIONAL INCOME
dc.subject
DYNAMIC PANEL
dc.subject
INEQUALITY DATA
dc.subject
NEGATIVE EFFECT
dc.subject
INCOME DISTRIBUTION
dc.subject
INCOMES
dc.subject
ESTIMATED COEFFICIENTS
dc.subject
AGGREGATE OUTPUT
dc.subject
ERROR TERM
dc.subject
SECONDARY SCHOOLING
dc.subject
ECONOMIC THEORY
dc.subject
ECONOMICS
dc.subject
EMPIRICAL RESEARCH
dc.subject
LAGGED DEPENDENT
dc.subject
FIXED EFFECTS
dc.subject
DATA SETS
dc.subject
ECONOMIC DEVELOPMENT
dc.subject
POSITIVE EFFECT
dc.subject
TRADE
dc.subject
RICH COUNTRIES
dc.subject
GDP
dc.subject
DATA SET
dc.subject
THEORY
dc.subject
CROSS-COUNTRY DIFFERENCES
dc.subject
WAR
dc.subject
INVESTMENT
dc.subject
INCOME SHARES
dc.subject
POVERTY
dc.subject
GINI COEFFICIENT
dc.subject
EMPIRICAL EVIDENCE
dc.subject
DISTRIBUTION OF WEALTH
dc.subject
POLICY RESEARCH
dc.subject
RISING INEQUALITY
dc.subject
POOR
dc.subject
CAPITAL INVESTMENT
dc.subject
DEVELOPMENT INDICATORS
dc.subject
INTERNATIONAL COMPARISONS
dc.subject
MIDDLE INCOME COUNTRIES
dc.subject
INEQUALITY COEFFICIENT
dc.subject
LONG RUN
dc.subject
INCOME LEVEL
dc.subject
CREDIT MARKET
dc.subject
DEVELOPMENT POLICY
dc.subject
INEQUALITY
dc.subject
GROWTH
dc.title
Effects of Income Inequality on Aggregate Output
en
dc.type
Working Paper
en
okr.date.disclosure
2015-06-22
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.docurl
http://documents.worldbank.org/curated/en/2015/06/24679226/effects-income-inequality-aggregate-output
okr.globalpractice
Poverty
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-7317
okr.identifier.externaldocumentum
090224b082f720f2_1_0
okr.identifier.internaldocumentum
24679226
okr.identifier.report
WPS7317
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/06/22/090224b082f720f2/1_0/Rendered/PDF/Effects0of0inc00on0aggregate0output.pdf
en
okr.region.administrative
Latin America & Caribbean
okr.topic
Poverty Reduction :: Poverty Impact Evaluation
okr.topic
Services Transfers to Poor
okr.topic
Poverty Reduction :: Pro-Poor Growth
okr.topic
Poverty Reduction :: Inequality
okr.topic
Macroeconomics and Economic Growth
okr.topic
Macroeconomics and Economic Growth :: Economic Growth
okr.topic
Macroeconomics and Economic Growth :: Economic Theory & Research
okr.unit
Office of the Chief Economist, Latin America and the Caribbean Region

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