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The Review of Economics and Statistics Vol. 89 No. 3 2007

Inequality and Institutions

Alberto Chong1; Mark Gradstein2

1 Inter-American Development Bank · 2 Center for Economic and Policy Research

Abstract

This paper presents theory and evidence on the relationship between inequality and institutional quality. We exhibit a model in which the two may dynamically reinforce each other and set to test this relationship with a broad array of institutional measures. The double causality between institutional strength and a more equal distribution of income is empirically established using dynamic panel and linear feedback analysis.

DOI
10.1162/rest.89.3.454
Volume
89
Issue
3
Pages
454-465
Language
en
Sources
openalex crossref

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