The Inequality-growth Nexus in the Short and Long Run: Empirical Evidence from China
时间：2006-10-01 访问量：1236
Wan, Guanghua, Ming Lu and Zhao Chen, 2006, “The Inequality–Growth Nexus in the Short and Long Runs: Empirical Evidence from China,” Journal of Comparative Economics, Vol. 34, No. 4, 654-667.
The Inequality-growth Nexus in the Short and Long Run:
Empirical Evidence from China
Guanghua WAN Ming LU Zhao CHEN
Abstract: This paper argues that the conventional approach of data averaging is problematic for exploring the growth–inequality nexus. It introduces the polynomial inverse lag (PIL) framework so that the impacts of inequality on investment, education, and ultimately on growth can be measured at precisely defined time lags. Combining PIL with simultaneous systems of equations, we analyze the growth–inequality relationship in postreform China, finding that this relationship is nonlinear and is negative irrespective of time horizons.
Keywords: inequality, growth, China, polynomial inverse lag
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