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.
|Number of pages||12|
|Journal||Review of Economics and Statistics|
|State||Published - 1 Aug 2007|
ASJC Scopus subject areas
- Social Sciences (miscellaneous)
- Economics and Econometrics