Top-end inequality and growth: Empirical evidence
Tuominen, Elina (2016)
Tampereen yliopisto
2016
Johtamiskorkeakoulu - School of Management
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Julkaisun pysyvä osoite on
https://urn.fi/URN:ISBN:978-952-03-0250-4
https://urn.fi/URN:ISBN:978-952-03-0250-4
Tiivistelmä
New series of the top 1% income shares in 23 countries are used to investigate the
relationship between top-end inequality and subsequent economic growth from
the 1920s to the 2000s. The association is studied using different time-period
specifications, with a focus on data averaged over 5- and 10-year periods. To
address the issue related to chosen functional forms, penalized spline methods
are exploited to allow for nonlinearities. Empirical evidence suggests that the
association between top-end inequality and growth can be linked to the level
of economic development. The main findings relate to currently “advanced”
countries: the results show a negative relationship between top-end inequality
and subsequent growth in many settings, but the findings also suggest that this
association may become weaker in the course of economic development. “Lessadvanced”
countries need to be studied further when more data become available.
relationship between top-end inequality and subsequent economic growth from
the 1920s to the 2000s. The association is studied using different time-period
specifications, with a focus on data averaged over 5- and 10-year periods. To
address the issue related to chosen functional forms, penalized spline methods
are exploited to allow for nonlinearities. Empirical evidence suggests that the
association between top-end inequality and growth can be linked to the level
of economic development. The main findings relate to currently “advanced”
countries: the results show a negative relationship between top-end inequality
and subsequent growth in many settings, but the findings also suggest that this
association may become weaker in the course of economic development. “Lessadvanced”
countries need to be studied further when more data become available.