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Article: An Empirical Test of the Institutionalist View on Income Inequality: Economic Growth within the United States.
- Article from:
- The American Journal of Economics and Sociology
- Article date:
- April 1, 2000
- Author:
CopyrightCOPYRIGHT 2000 Blackwell Publishers Ltd. 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)
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CAROLYN B. RODRIGUEZ [*]
ABSTRACT. This paper analyzes the relationship between income inequality and economic growth within the United States using state level data. It describes income inequality in the U.S. since 1960, then employs a two-step causal model to test the institutionalist contention that income inequality leads to socio-political instability, which has a negative impact on economic progress. The empirical results offer support for the institutionalist view.
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Introduction
EMPIRICAL WORK INVESTIGATING THE HYPOTHESIS that increases in income inequality leads to reduced economic growth has almost exclusively been performed ...