Contents of the volume

2017, Volume 70 - Issue 3

ISSN: 2499-8265
RSS feed citation: At RePEc
Publication date: 01 August 2017

ASYMMETRIC EFFECT OF REAL EXCHANGE RATE VOLATILITY ON AGRICULTURAL PRODUCTS EXPORT: A CASE STUDY

Otse F. Alegwu, Benjamin C. Asogwa, Goodness C. Aye

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FACTORS INFLUENCING INTER-REGIONAL LIVING-COST DIFFERENTIALS: PANEL DATA ANALYSIS FOR THE CASE OF THE U.S.

Richard Cebula, John CONNAUGHTON , Caroline SWARTZ

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HOW MUCH INEQUALITY IS HARMFUL FOR GROWTH? THE GROWTH MAXIMIZING RATE OF INEQUALITY IN THE CONTEXT OF THE MEXICAN ECONOMY

Jorge Charles-Coll, Elisabeth L. MAYER-GRANADOS

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PROCYCLICAL TENDENCIES IN A SMALL OIL EXPORTER

Roger Hosein, Isaac DIALSINGH, Jaymieon JAGESSAR

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WHEN IS LOWER INFLATION LESS STABLE? EVIDENCE FROM EIGHT DEVELOPING ECONOMIES

Georgios Karras

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INDIA'S BURGEONING FOOD SUBSIDIES: HOW MUCH CAN WE BLAME THE FOOD CORPORATION OF INDIA?

Swaha Shome, Mala Lalvani

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ACHIEVING SUSTAINABLE ECONOMIC GROWTH AND DEVELOPMENT IN COMMUNITIES ACROSS THE UNITED STATES

Oluwole Owoye, Olugbenga A. Onafowora

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Genoa Chamber of Commerce
Economia Internazionale / International Economics

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Corresponding author

Jorge CHARLES-COLL, Universidad Autonoma de Tamaulipas, Victoria, Mexico

Co-authors

Elisabeth L. MAYER-GRANADOS , Universidad Autonoma de Tamaulipas, Victoria, Mexico

How much Inequality is Harmful for Growth? The Growth Maximizing Rate of Inequality in the Context of the Mexican Economy

Pages

301-318

Abstract

This paper contributes to the debate over the relationship between inequality and growth by testing in a country specific context, the proposition in Charles-Coll (2015) of a nonlinear relationship between income inequality and economic growth. The model is tested for the Mexican economy using a highly disaggregated dataset at the municipal level for the period of 2000-2005.  An inverted “U” shaped relationship is demonstrated, showing that low levels of inequality exert a positive correlation with economic growth while high levels have a negative one. Additionally, the findings demonstrate the existence of a growth maximizing rate of inequality (GMRI) that optimizes growth rates and releases the economy from the distortions generated by elevated inequality or taxation.

JEL classification

O40, O15, O11

Keywords

Income Inequality, Economic Growth, Mexico

Index

  1. Introduction
  2. Empirical evidence
  3. Discussion

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