The Puzzle between Economic Growth and Income Inequality
Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
The purpose of this paper is to investigate the correlation between income inequality and economic growth in a cross-section of 90 countries from 2002 to 2006. The controversial Kuznets Hypothesis, the economic model that hypothesizes the relationship between inequality and per capita income is an inverted U-shaped curve, is scrutinized and investigated to consider its viability and accuracy. A multiple linear regression model is estimated and the viability of the regression model is supported by several statistical tests. Based on the estimated model, a negative correlation between growth and inequality has been found.
Place, publisher, year, edition, pages
2013. , 33 p.
Income inequality, economic growth, Gini index, Lorenz curve, Kuznets curve, cross-sectional
IdentifiersURN: urn:nbn:se:hj:diva-23650OAI: oai:DiVA.org:hj-23650DiVA: diva2:708162