Inflation and income inequality in a variety-expansion growth model with menu costs

Zheng, Zhijie; Mishra, Tapas; Yang, Yibai

doi:10.1016/j.econlet.2020.109373

Cited by 20 publications

(6 citation statements)

References 14 publications

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“…It has been discovered that in ation affects income inequality through interest rate and asset value effects. According to our numerical analyses, these effects become negative when in ation rises, which inhibits economic growth and lessens income inequality (Zheng et al 2020).…”

Section: In Ation Monnin (2014) Discover a U-shaped Relationship Betw...mentioning

confidence: 88%

Social Capital and Income Inequality: Findings From Selected High Income Countries

Bayraktar

2024

Preprint

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Since the early 1980s, income inequality has increased in many nations whereas after 2008 financial crisis and Covid-19, this trend had accelerated. This paper aims to explore the effect of social capital for decreasing income inequality. Policymakers need to understand how social capital affects income inequality affects and to determine if there are other effects, since this may affect the sustainability of a country. I used secondary data provided from reports of the World Bank, Eurostat, SolAbility and then subjected them to regression analysis and specifically; Hausman specification test fixed effect regression method, random effect regression method, Hausman endogeneity regression method. Based on these empirical results I can conclude that after governance, social capital has the most significant effect on decreasing the income inequality. Therefore, developing and least developed countries should take aproppriate policy implications to increase the social capital level among their citiziens and society. JEL Codes: O15, O47, O52, C23

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Section: In Ation Monnin (2014) Discover a U-shaped Relationship Betw...mentioning

confidence: 88%

Social Capital and Income Inequality: Findings From Selected High Income Countries

Bayraktar

2024

Preprint

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“…2017); financial development (Zhang and Ben Naceur 2019); government spending (Lee and Wang 2021); unemployment and vulnerable employment (Carvalho and Di Guilmi 2020); inflation (Zheng et al. 2020); trade openness and foreign direct investment (FDI) inflows (Hartmann et al. 2020); Internet usage (Canh et al.…”

Section: Methods Data and Estimatesmentioning

confidence: 99%

Economic complexity and income inequality: New evidence of a nonlinear effect

Nguyen

Tran

2023

Social Science Quarterly

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Intro: The literature indicates that economic complexity (the geography of economic activities) is an important explanatory factor in income inequality; however, empirical evidence is still inconclusive. This study addresses this gap by considering the nonlinear influence of economic complexity on income inequality. Methods: Panel quantile regression with fixed effects is applied for a global sample of 121 countries from 1995 to 2018, showing robust findings. Results: Economic complexity appears to have an inverted-U-shaped effect on income inequality. That is, economic complexity likely increases income inequality up to a threshold, beyond which economic complexity helps to reduce income inequality. This inverted-U-shaped effect is found consistently in low-income, lower-middle-income, and upper-middle-income countries, while the opposite effect is found in high-income countries. Evidence of an inverted-U-shaped effect is also documented in most regions except the Middle East & North Africa and South Asia. Interestingly, the study finds that improvements in economic complexity appear to have U-shaped effects on the income share of the bottom earners and inverted-U-shaped effects on the income share of the top earners. Conclusion: These effects explain the inverted-U-shaped effect of economic complexity on income inequality. The results are robust across different quantiles, proxies of income inequality, and various control variables KEYWORDS economic complexity, income inequality, income share, nonlinear effect, panel data JEL CLASSIFICATION D63, O11, O33

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“…Inflation, which has unclear effects on economic growth according to theoretical models, is selected as the third control variable. While some studies suggest that inflation has a positive impact on economic growth (Siami-Namini and Hudson (2019), others indicate undesirable effects (Zheng, Mishra, and Yang, 2020). Moreover, inflation is a frequently utilized independent variable in empirical analyses investigating the influence of income inequality on economic growth.…”

Section: 𝑎𝑎mentioning

confidence: 99%

Unraveling the Mechanisms of Income Inequality on Economic Growth in Ethiopia: Insights from Empirical Analysis

Hordofa

2023

Preprint

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The aim of this research was to investigate how income inequality impacts the economic growth of Ethiopia by analyzing the various ways in which it influences economic growth. The study gathered an exclusive dataset from diverse secondary sources that ranged from 1981 to 2016. To examine the link between transmission channels, inequality of income, and growth, the study utilized a stepwise regression autoregressive distributed lag (ARDL) approach. The research concluded with four lines of reasoning, including political economy, innovation, fertility, and saving channels. According to the findings, inequality of income has a positive impact on innovative activities and total savings as measured by gross fixed capital formation, but it only has a negative and significant effect on economic growth through the channels of innovation and savings. While caution should be taken when generalizing the findings to other countries, this study offers valuable insights into the intricate link between income inequality and economic growth specifically in Ethiopia. The study recommends that policymakers implement targeted policies to address the different transmission channels through which income inequality affects economic growth, to comprehensively tackle this issue.

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Inflation and income inequality in a variety-expansion growth model with menu costs

Cited by 20 publications

References 14 publications

Social Capital and Income Inequality: Findings From Selected High Income Countries

Social Capital and Income Inequality: Findings From Selected High Income Countries

Economic complexity and income inequality: New evidence of a nonlinear effect

Unraveling the Mechanisms of Income Inequality on Economic Growth in Ethiopia: Insights from Empirical Analysis

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