|
|
Article: Does simultaneity matter? the relationship between economic growth, income inequality, corruption, and political instability.
- Article from:
- Journal of Academy of Business and Economics
- Article date:
- February 1, 2007
- Author:
CopyrightCOPYRIGHT 2007 International Academy of Business and Economics. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
ABSTRACT
A simultaneous equations model is developed which endogenously determines economic growth, income inequality, corruption, and political instability while using initial GDP, average schooling, investment share of GDP, population growth, educational inequality, trade share of GDP, and ethnolinguistic fractionalization as exogenous variables. Eighteen different specifications of the model are estimated using ordinary least squares (OLS), two-stage least squares (2SLS), and three-stage least squares (3SLS) methods. In one third of the cases estimated, the OLS and simultaneous results differ significantly. When dealing with variables that may have a two-way ...