Inequality and Institutions
Posted: 9 Dec 2004
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Date Written: November 2004
Abstract
This Paper presents theory and evidence on the relationship between inequality and institutional quality. We exhibit a model in which the two dynamically reinforce each other and set to test this relationship with a broad array of institutional measures. We establish the double causality between institutional strength and a more equal distribution of income and show its robustness to different data sources that cover various time-spans and to changes in specification.
Keywords: Institutions, inequality, governance, causality
JEL Classification: D70, O15, O17
Suggested Citation: Suggested Citation
Chong, Alberto and Gradstein, Mark, Inequality and Institutions (November 2004). Available at SSRN: https://ssrn.com/abstract=628942
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