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专题二 The growth–inequality association( Government ideology matters).pdf

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专题二 The growth–inequality association( Government ideology matters)

Journal of Development Economics 87 (2008) 300 – 308 /locate/econbase The growth–inequality association: Government ideology matters Christian Bjørnskov Department of Economics, Aarhus School of Business, University of Aarhus, Prismet, Silkeborgvej 2, DK-8000 Aarhus C, Denmark Received 29 August 2006; received in revised form 19 April 2007; accepted 29 April 2007 Abstract This note suggests that the association between income inequality and economic growth rates might arguably depend on the political ideology of incumbent governments. Estimates indicate that under leftwing governments, inequality is negatively associated with growth while the association is positive under rightwing governments. This may provide a qualification to recent studies of inequality. © 2007 Elsevier B.V. All rights reserved. JEL Classification: D31; O40 Keywords: Income inequality; Ideology; Growth 1. Introduction conflicting findings: depending on the specific research design and sample, inequality is either bad for growth, Economic growth theory has suggested a number of good for growth, or perhaps irrelevant. To understand objective channels leading from inequality to economic these seemingly incompatible findings, it may be worth growth and performance: incentive structures may suffer noting that differences in political ideology continue to from combating inequality (Kaldor, 1956; North, 1991; be reflected in individuals beliefs about, for example, Olson, 1996), human capital accumulation

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