Religious Diversity and Economic Inequality Is there a
relationship between religious diversity and economic inequality?
Please use the RELDIV.csv dataset, which includes the religious
diversity index (variable reldiv, independent variable) and
economic inequality index (variable wbgini, dependent variable) for
143 countries to answer the question. Compute Spearman’s Rho and
interpret the results (strength and PRE interpretation). (20
points) Variable Description Current Coding reldiv Religious
fractionalization From 0 to 1. Actual range: 0 – 0.86. wbgini Gini
index, a quantified representation...
A) Explain the relationship between economic growth and income
inequality. Based on your answer, explain the phenomenon described
by development economists as the Kuznets Inverted U curve.
B) What evidence supported the Kuznets inverted U curve,
albeit mostly speculative? [Kuznets readily admitted that the basis
for the relationship was “perhaps 5 percent empirical and 95
percent speculation”].
Also, what was W. Arthur Lewis’ model’s evidence and
assumption in support of the Inverted U curve?
C) What evidence has been advanced...
Explain the difference between inclusive and extractive economic
institutions. What are the political and economic outcomes
associated with each type of institution? What are the sources of
economic institutions?
3. Explain Adam Smith’s view of the relationship between the
division of labor, economic growth and a system of natural liberty.
Why did he believe that a system of natural liberty was necessary
for economic growth? Elaborate.
Explain the difference between inclusive and extractive economic
institutions. Which economic and political outcomes are associated
with each set of institutions? Provide examples.