This paper explores the relationship between income inequality and growth using panel data on Swedish counties from 1960-2000. Compared to standard methods of estimating this relationship yearly regional level data are used, and inequality is allowed to be endogenous. We find a significant...

Using a panel data set for 18 Asian countries over the period 1970-2008, this study explores the relationship between economic growth and income inequality with special focus on the role of credit market imperfections in shaping the linkage. The study identifies credit market imperfections in...

Using a panel data set for 18 Asian countries over the period 1970-2007, this study explores the relationship between economic growth and income inequality with special focus on the role of credit market imperfections in shaping the linkage. The study identifies credit market imperfections in...

This paper empirically examines whether there exists stochastic convergence of income inequality among 48 contiguous states within the US over the 1916–2005 period. For that purpose, we employ the recently developed panel stationarity test of Carrion-i-Silvestre, Del Barrio-Castro and...

This paper provides a simple theory to study how the allocation of public funds between primary and higher education affects human cap- ital accumulation. The allocation is endogenously determined through majority voting. Public funding for higher education is not supported when a majority is...

This paper examines the effect of income distribution on growth in developing countries. Based on data from the World Bank and the United Nations Development Programme, we use a sample of twenty-eight developing economies and find that income distribution does not affect growth in these...

This paper examines the effect of income distribution on growth in developing countries. Based on data from the World Bank and the United Nations Development Programme, we use a sample of twenty-eight developing economies and find that income distribution does not affect growth in these...

Recent theoretical contributions assert that income inequality impacts negatively human capital accumulation, and consequently long-run growth. Galor and Zeira (1993) show that such a relationship works primarily through financial constraints, while de la Croix and Doepke (2003) demonstrate that...

In this paper we argue that a better understanding of the relationship between inequality and growth can be obtained by shifting the analysis from the space of final achievements to the space of opportunities. To this end, we introduce the Opportunity Growth Incidence Curve (OGIC) that can be...

This paper addresses the problem of the normative evaluation of income tax systems and income tax reforms. While most of the existing criteria, framed in the utilitarian tradition, are uniquely based on information about individual incomes, this paper, building upon the opportunity egalitarian...