Democracy and Income Inequality：A Threshold Regression Analysis.

• Main Authors: Chia-Ying Wu, 吳佳穎
• Other Authors: 莊希豐
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/01182503875133784348

碩士 === 淡江大學 === 經濟學系碩士班 === 103 === This paper tries to investigate the threshold effects of democracy on income inequality. Specifically, we use Hansen’s (2000) threshold regression model to examine the democracy- inequality links varies with the degree of country’s income level. By applying the model to 95 countries during the period 1981-2013, we find that there indeed exists an income threshold in the democracy- inequality link. The empirical results show that low-income countries have a negative and significant relationship between the democracy and income inequality. However, the relation is positive and significant in the middle-income countries and high-income countries. It indicates that the increasing in the degree of democratization would reduce income inequality in low-income countries, but increase income inequality in the middle-income countries and high-income countries.