Growth-Inequality Relationship. An Analytical Approach and Some Evidence for Latin America

The explanation of economic inequality and its relationship to growth has produced a great amount of research. Kuznets (1955) formulated the quot;inverted-Uquot; hypothesis according to which inequality increases in the initial levels of development to decrease later on, after a certain point of return. This proposition has been the subject of great attention with many theoretical and empirical contributions. In this paper we present an analytical approach to the growth-inequality relationship, including not only the most common measures, but also new indicators based on the information theory.The work also includes the estimation of the growth-inequality relationship and the contrast of the Kuznets' hypothesis within Latin America