Knack, Stephen and Keefer, Philip (1996): Does inequality harm growth only in democracies? A replication and extension. Published in: American Journal of Political Science , Vol. 41, No. 1 (January 1997): pp. 323-332.
Download (64Kb) | Preview
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.
|Item Type:||MPRA Paper|
|Original Title:||Does inequality harm growth only in democracies? A replication and extension|
|Keywords:||inequality, democracy, growth|
|Subjects:||D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
D - Microeconomics > D7 - Analysis of Collective Decision-Making > D72 - Political Processes: Rent-Seeking, Lobbying, Elections, Legislatures, and Voting Behavior
P - Economic Systems > P4 - Other Economic Systems > P48 - Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
|Depositing User:||Stephen Knack|
|Date Deposited:||16. Sep 2010 11:37|
|Last Modified:||13. Feb 2013 14:22|
Banks, Arthur (1987). A Political Handbook of the World. Binghamton, NY: CSA Publications, SUNY-Binghamton.
Barro, Robert J. (1991). "Economic Growth in a Cross Section of Countries." Quarterly Journal of Economics, 106(2), 407-43.
Burkhart, Ross E. and Lewis-Beck, Michael (1994). "Comparative Democracy: The Economic Development Thesis." American Political Science Review, 88(4), 903-10.
Gastil, Raymond D. (1987). Freedom in the World. Westport, Connecticut: Greenwood.
Gurr, Ted Robert (1990). Polity II: Political Structure and Regime Change, 1800-1986. First ICPSR edition, Inter-University Consortium for Political and Social Research, Ann Arbor, MI. Keefer, Philip and Knack, Stephen (1995). "Polarization, Property Rights and the Links Between Inequality and Growth." Presented at the American Economic association annual meetings, Washington DC, January.
Meltzer, Allan H. and Richard, Scott F. (1981). "A Rational Theory of the Size of Government." Journal of Political Economy, 89(5), 914-27.
Nelson, Richard R. and Phelps, Edmund S. (1966). "Investment in Humans, Technological Diffusion, and Economic Growth." American Economic Review, 56, 69-75.
Paukert, Felix (1973). "Income Distribution at Different Levels of Development: A Survey of the Evidence." International Labor Review, 108(2-3), 97-125.
Persson, Torsten and Tabellini, Guido (1994). "Is Inequality Harmful for Growth?" American Economic Review, 84(3), 600-621.
Saint-Paul, Gilles and Verdier, Thierry (1993). "Education, Democracy and Growth." Journal of Development Economics, 42, 399-407.
Summers, Robert and Heston, Alan (1988). "A New Set of International Comparisons of Real Product and Price Levels: Estimates for 130 Countries, 1950-85." Review of Income and Wealth, 34(1), 1-25.
Taylor, Charles and Jodice, David (1983). World Handbook of Political and Social Indicators. New Haven, CT: Yale University Press.
Wang, T. Y.; Dixon, William J.; Muller, Edward N. and Seligson, Mitchell A. (1993). "Inequality and Political Violence Revisited." American Political Science Review, 87, 979-93.
World Bank (1984). World Development Report, 1984. Washington DC: World Bank.