Corruption and inequality of wealth amongst the very rich.
Corruption may lead to tax evasion and unbalanced favors and this may lead to extraordinary wealth amongst a few. We study for 13 countries 6 years of Forbes rankings data and we examine whether corruption leads to more inequality amongst the wealthiest. When we correct in our panel model for current and one-year lagged competitiveness and GDP growth rates, we find no such effect. In fact, we find that more competitiveness decreases inequality amongst the wealthiest.
Erasmus School of Economics, Econometric Institute, Burgemeester Oudlaan 50, 3062 PA Rotterdam, The Netherlands.
Philip Hans
PH
Franses
Erasmus School of Economics, Econometric Institute, Burgemeester Oudlaan 50, 3062 PA Rotterdam, The Netherlands.
Bert
B
de Groot
Corruption; Inequality; Wealth