What is the effect of income inequality on economic growth?
| Thesis title in Czech: | Jaký je vliv příjmové nerovnosti na hospodářský růst? |
|---|---|
| Thesis title in English: | What is the effect of income inequality on economic growth? |
| Key words: | příjmová nerovnost, hospodářský růst, fixní efekty, GMM, porovnání států, přerozdělování |
| English key words: | income inequality, economic growth, fixed effects, GMM, cross-country comparison, redistribution |
| Academic year of topic announcement: | 2017/2018 |
| Thesis type: | Bachelor's thesis |
| Thesis language: | angličtina |
| Department: | Institute of Economic Studies (23-IES) |
| Supervisor: | PhDr. Jaromír Baxa, Ph.D. |
| Author: | hidden - assigned by the advisor |
| Date of registration: | 07.06.2018 |
| Date of assignment: | 07.06.2018 |
| Date and time of defence: | 10.06.2019 09:00 |
| Venue of defence: | Opletalova - Opletalova 26, O105, Opletalova - místn. č. 105 |
| Date of electronic submission: | 09.05.2019 |
| Date of proceeded defence: | 10.06.2019 |
| Opponents: | Stanislav Astapovich |
| URKUND check: | |
| Guidelines |
| Research question and motivation
During the last decades, many countries have registered an increase in their income inequalities. At the same time, they have witnessed higher incomes, GDP per Capita, and lower poverty rates. However, it is still not clear whether there is a causation between them, or the countries have continued to develop in spite of higher income inequality between households. The aim of this paper is to explore the existence of this trade-off between innovation, economic development and GDP per capita on one hand and income inequality on the other hand. Contribution The results provided by authors are ambiguous. For example, Julia Włodarczyk in her paper “Innovations and income inequalities – a comparative study” concludes that: “In general, higher gross domestic expenditure on R&D as a percentage of GDP tends to increase inequalities, while a higher number of patent applications or a higher value of the Creative Economy Index has an opposite effect”. At the same time, the paper by Cristiano Antonelli and Agnieszka Gehringer affirms that: “the proper investigation of the relationship between technological change and income inequality requires the recognition that it works both ways”. This thesis might contribute by confirming one of these two parts, or by finding that the answer depends on concrete circumstances. Another meaningful contribution might be finding new positive and negative relationships between income inequality and other indicators. |
| References |
| 1. Julia Włodarczyk. 2017. Innovations and income inequalities – a comparative study, Journal of International Studies, Vol 10, Issue 4 (2017)
2. Simon Kuznets. Economic Growth and Income Inequality, The American Economic Review, Vol. 45, No. 1 (Mar., 1955), pp. 1-28 3. Cristiano Antonelli and Agnieszka Gehringer. 2013. Innovation and Economic inequality. Department of Economics and Statistics “COGNETTI DE MARTIIS” & BRICK. University of Turin 4. Jeffrey M. Wooldridge. 2016. Introductory Econometrics: a Modern Approach. Cengage Learning. |
| Preliminary scope of work |
| Methodology
We will use the cross-sectional and time-series data analysis. It is also appropriate to use multi-year averaged data, as in (Antonelli & Gehringer). The same paper suggest using the feasible generalized least squares (FGST) methodology. The methodological basis would be running several regressions and analysing their results. Outline 1. Introduction. Brief information about the particular characteristics. 2. Literature review. Stating the main literature and the reasons why I am going to use it. 3. Theoretical part. Describing the relevant theory.4. Data description. 5. Methodology used. 6. Discussion of the results based on the previous parts. 7. Conclusions. |