O efeito da desigualdade da distribuição de renda no crescimento econômico

Abstract

This study attempts to identify the effect of inequality on growth by using Brazilian data, in order to mitigate comparability problems present in cross-country studies. The econometric method System-GMM was used and compared with other three econometric methods (OLS, Panel Within-Groups, and GMM) in a dynamic panel, aiming to use a consistent estimator in the presence of endogeneity in the analysis that involves inequality and growth. Our results suggest that the hypothesis of nonlinearity between the variables cannot be rejected. The same conclusion holds for hypothesis of incomplete credit markets and the argument from political economy that redistributive policies mitigate growth.