Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82708
Authors: 
Nahum, Ruth-Aïda
Year of Publication: 
2005
Series/Report no.: 
Working Paper, Department of Economics, Uppsala University 2005:8
Abstract: 
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 positive impact of inequality on growth, but the magnitude of the effect decreases with the length of the growth period studied. When allowing income inequality to be endogenous, using a panel 2SLS IV estimation, we find positive effect of inequality on 1 to 5-year growth rates, when significant, whereas the effect on 10-year growth rates are not clear cut.
Subjects: 
Income inequality
regional economic growth
panel data
JEL: 
D31
O15
O40
Document Type: 
Working Paper

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