Top

Journal of Geographical Systems

Published in:

19-04-2021 | Original Article

Dynamics of inequality and growth in Europe: may spatial models solve the puzzle?

Authors: Paula Puškárová, Miriama Vašková

Published in: Journal of Geographical Systems | Issue 1/2022

Activate our intelligent search to find suitable subject content or patents.

search-config

AI-assisted search

Off

Abstract

The link between income inequality and economic growth remains poorly understood. The global economic crisis challenged numerous growth studies by highlighting considerable degrees of spatial interdependence among economies. The existence of fewer restrictions on factor movements prompted spatial redistributions of income inequalities. Our paper attempts to reestimate such inequality impacts across the EU by allowing for these redistributions. We employ the spatial Durbin error specification, and unlike other studies, we make statistical inferences along the lines of a welfare-adjusted production function. Our results lend support to the presence of spillover effects emanating from income redistribution larger than those from unemployment, knowledge, or human capital.

previous article The propagation effect of commuting to work in the spatial transmission of COVID-19

next article Multidimensional economic indicators and multivariate functional principal component analysis (MFPCA) in a comparative study of countries’ competitiveness

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Technik"

Online-Abonnement

Mit Springer Professional "Technik" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 390 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Maschinenbau + Werkstoffe

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Retrieved from http://distancecalculator.globefeed.com/world_distance_calculator.asp.

Retrieved from https://spatial-panels.com/software/ and http://www.regroningen.nl/elhorst/software.shtml

Alesina A, Rodrik D (1994) Distributive politics and economic growth. Q J Econ 109(2):465–490CrossRef

Arcand J-L, D’Hombres B (2007) Explaining the negative coefficient associated with human capital in augmented solow growth regressions. Working Paper No. 0510010 - series Macroeconomics. EconWPA. Available at: <http://128.118.178.162/eps/mac/papers/0510/0510010.pdf>

Bachmann R, Bechara P, Schaffner S (2016) Wage inequality and wage mobility in Europe. Rev Income Wealth 62(1):181–197CrossRef

Banerjee AV, Duflo E (2003) Inequality and growth: what can the data say? Available at: http://economics.mit.edu/files/753

Barro RJ (1999) Inequality, growth, and investment. NBER Working Paper Series. Working Paper No. 7038. National Bureau of Economic Research

Barro RJ, Lee JW (2010) A new data set of educational attainment in the world, 1950–2010. NBER Working Paper 15902

Bebonchu A (2013) The spatial dynamics of growth and inequality: evidence using U.S. county-level data. Econ Lett 118:19–22CrossRef

Berg A, Ostry JD, Tsangarides CG, Yakhshilikov Y (2018) Redistribution, inequality, and growth: new evidence. J Econ Growth 23(3):259–305CrossRef

Bohle D, Greskovits B (2007) Neoliberalism, embedded neoliberalism and neocorporatism: towards transnational capitalism in Central-Eastern Europe. West Eur Polit 30(3):443–466CrossRef

Castello A, Domenech R (2002) Human capital inequality and economic growth: some new evidence. Econ J 112(478):187–200CrossRef

Chambers D, Dhongde S (2016) Convergence in income distributions: evidence from a panel of countries. Econ Model 59:262–270CrossRef

Cingano F (2014) Trends in income inequality and its impact on economic growth. [online]. OECD Social, Employment and Migration Working Papers No. 163. OECD Publishing. Available at: http://www.oecd.org/els/soc/trends-in-income-inequality-and-its-impact-on-economic-growth-SEM-WP163.pdf

Dissou Y, Didic S, Yakautsava T (2016) Government spending on education, human capital accumulation, and growth. Econ Model 58:9–21CrossRef

Elhorst JP (2012) Spatial econometrics: From cross-sectional data to spatial panels. Springer Briefs in Regional Science. Springer, Heidelberg, New York, Dordrecht, London

Esping-Andersen G (1990) The three worlds of welfare capitalism. Princeton University Press, New Jersey

Ezcurra R (2007) Is income inequality harmful for regional growth? Evidence from the European Union. Urban Stud 44(10):1953–1971CrossRef

Ferrera M (1996) Il modello di Welfare sud europeo. Caratteristiche, genesi, prospettive. Quaderni di ricerca Poleis 5

Forbes KJ (2000) A reassessment of the relationship between inequality and growth. Am Econ Rev 90(4):869–887CrossRef

Griliches Z (1990) Patent statistics as economic indicators: a survey. J Econ Lit 28:1661–1707

Kumhof M, Lebarz C, Ranciere R, Richter AW, Throckmorton NA (2012) Income inequality and current account Imbalances. IMF Working Paper. January 2012. International Monetary Fund. http://www.imf.org/external/pubs/ft/wp/2012/wp1208.pdf

Lamo A, Perez JJ, Schuknecht L (2013) Are government wages interlinked with private sector wages? J Policy Model 35(5):697–712CrossRef

Lee L-F, Yu J (2010) Estimation of spatial autoregressive panel data models with fixed effects. J Econom 154(2):165–185CrossRef

LeSage JP, Pace RK (2009) Introduction to spatial econometrics. CRC Press Taylor and Francis Group, Boca RatonCrossRef

Li H, Zou HF (1998) Income inequality is not harmful for growth: theory and evidence. Rev Dev Econ 2:318–334CrossRef

Maczulskij T (2013) Public–private sector wage differentials and the business cycle. Econ Syst 37(2):284–301CrossRef

Perotti R (1993) Political equilibrium, income distribution, and growth. Rev Econ Stud 60(4):755–776CrossRef

Persson T, Tabellini G (1994) Is inequality harmful for growth? Am Econ Rev 84(3):600–621

Puskarova P, Piribauer P (2016) The impact of knowledge spillovers on regional total factor productivity: new empirical evidence from selected European capitals. Econ Syst 40:335–344CrossRef

Rajan RG (2010) Fault lines: how hidden fractures still threaten the world. Princeton University Press, Princeton, New Jersey

Rehme G (2015) Endogenous (re-)distributive policies and economic growth: a comparative static analysis. Econ Model 40:355–366CrossRef

Rodriguez-Pose A (2018) The revenge of the places that don’t matter (and what to do about it). Cambridge J Reg Econ Soc 11(1):189–209CrossRef

Roser M, Crespo-Cuaresma J (2016) Why is income inequality increasing in the developed world? Rev Income Wealth 62(1):1–27CrossRef

Salotti S, Trecroci C (2012) Even worse than you thought: the impact of government debt on aggregate investment and productivity. April 2012. https://ecomod.net/system/files/saltreFinal.pdf

Sen, A. (2009). Capitalism beyond the crisis. New York Review of Books, New York

Stiglitz J (2012) The price of inequality. How Today's Divided Society Endangers Our Future. June 2012

Stockhammer E (2012) Financialization, income distribution and the crisis. Investig Econ 71(279):39–70

Title: Dynamics of inequality and growth in Europe: may spatial models solve the puzzle?
Authors: Paula Puškárová
Miriama Vašková
Publication date: 19-04-2021
Publisher: Springer Berlin Heidelberg
Published in: Journal of Geographical Systems / Issue 1/2022
Print ISSN: 1435-5930
Electronic ISSN: 1435-5949
DOI: https://doi.org/10.1007/s10109-021-00348-4

Springer Professional

Abstract

Please log in to get access to your license.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Technik"

Springer Professional "Wirtschaft"

Other articles of this Issue 1/2022

Knowledge networks and strong tie creation: the role of relative network position

The propagation effect of commuting to work in the spatial transmission of COVID-19

Exploring the dynamics of the disaggregated intercity corporate network in the Yangtze River Delta, China: a relational event approach

2021 JGS best paper award and the editors’ choice paper volume 24(1)

The impact of fiscal efficiency on poverty reduction in Indonesia: institutional factor and geographical differences

Multidimensional economic indicators and multivariate functional principal component analysis (MFPCA) in a comparative study of countries’ competitiveness

Premium Partner