A Kellogg Work-in-Progress Seminar with Visiting Fellow Diego Sánchez-Ancochea.
A common argument in the literature is that political and economic inequality reinforce each other to create a negative equilibrium. Latin America is an example of this negative feedback loop: a powerful elite has historically influenced public policy in its favor, thus contributing to economic inequality. But does higher political inequality always signal higher economic inequality in practice? Sánchez-Ancochea studies the cross-country relation between political and economic inequality through cluster analysis. He illustrates different patterns of interaction among Latin American countries and proposes hypotheses to explain them.
Originally published at conductorshare.nd.edu.