Tesis Cañadas Spatial Econometrics

Tesis Cañadas Spatial Econometrics - INEQUALITY AND...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: INEQUALITY AND ECONOMIC GROWTH: EVIDENCE FROM ARGENTINA’S PROVINCES USING SPATIAL ECONOMETRICS DISSERTATION Presented in Partial Fulfillment of the Requirements for The Degree Doctor of Philosophy in the Graduate School of The Ohio State University By Alejandro A. Cañadas, M.B.A. * * * * * The Ohio State University 2008 Dissertation Committee: Approved by Professor Claudio Gonzalez-Vega, Adviser Professor Mark Partridge ____________________________ Professor Joseph Kaboski Adviser Graduate Program in Agricultural, Environmental and Development Economics iii Copyright by Alejandro Cañadas 2008 ii ABSTRACT This dissertation analyzes whether or not the spatial distribution of inequality in the provinces of Argentina affects real per capita economic growth. The primary objective is to decouple the effect of inequality into within inequality, which is the own province i level of inequality, and the spillover of inequality from the closest provinces to province i . Furthermore, another important objective is to decouple the influence of inequality into long-run and short-run effect To accomplish this, I based the analysis on a framework used by Partridge (2005), which starts considering a very simple model, called a “parsimonious” model with a few key variables. Building on that simple model I started adding a set of important control variables in order to get a more fully specified model, called “base” model. The main idea of using this methodology is that the “parsimonious” models, with only a few variables (income distribution and a few other control variables), not only reduces multicollinearity but also it is a test for robustness in the relationship between inequality and growth (Perotti, 1996; Panizza, 2002; Partridge, 2005). In addition, following Partridge (2005), I considered that income distribution might have an entirely separate effect at the middle versus the tails of the distribution. Therefore, I decided to include the Gini that controls for the overall distribution, and the third Quantile share (Q3) that controls for middle-class consensus and the role of the iii median voter. The purpose of having two variables of income distribution is that when the Q3 is included in the model, the Gini controls for the overall distribution, especially at the tails, while Q3 controls for middle-class consensus and the role of the median voter. Additionally, a key difference from Partridge (2005) framework, apart from the decoupled effect of inequality into within inequality, which is the own province i level of inequality, and the spillover of inequality from the closest provinces to province i , is the explicit consideration of possible spatial autocorrelation in the models. To achieve this, I used two of the simplest spatial specifications: the spatial lag and spatial error models....
View Full Document

Page1 / 273

Tesis Cañadas Spatial Econometrics - INEQUALITY AND...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online