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Volume and Quality of Infrastructure and the Distribution of Income: An Empirical Investigation
Author(s) -
Calderón César,
Chong Alberto
Publication year - 2004
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/j.0034-6586.2004.00113.x
Subject(s) - endogeneity , economics , econometrics , distribution (mathematics) , inequality , quality (philosophy) , income distribution , panel data , economic inequality , econometric model , public economics , demographic economics , mathematics , mathematical analysis , philosophy , epistemology
We provide evidence on the link between infrastructure development and the distribution of income for the period 1960–97. We use roads, railways, telecommunications, and energy measures. The approach is comprehensive as individual measures and composite indices are used. Cross‐country and panel regressions are applied. In the latter, we apply GMM dynamic methods to minimize for endogeneity problems. We find that both quantity and quality of infrastructure are negatively linked with income inequality. The quantitative link tends to be stronger in developing countries than the qualitative link. These findings hold when using different econometric methods and most infrastructure measures.