Does inequality harm growth only in democracies? A replication and extension

We reconstruct a dataset used by Persson and Tabellini (AER, 1994) to test the robustness of their finding that inequality reduces income growth, but only in democracies. We find that their result is highly sensitive to the use of data sources on both democracy and inequality. When we substitute more commonly-used and higher-quality data sources for democracy and inequality, their key result disappears.

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Year of publication:	1996
Authors:	Knack, Stephen ; Keefer, Philip
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	inequality \| democracy \| growth

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Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Notes:	Published in American Journal of Political Science 1.41(1997): pp. 323-332
Classification:	D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement ; D72 - Economic Models of Political Processes: Rent-Seeking, Elections, Legistures, and Voting Behavior ; P48 - Legal Institutions; Property Rights
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008642712